Connect with us


Troubles at NSE as prices and benchmark fall





Tough times loom for the bearish Nairobi Securities Exchange (NSE) as a cocktail of global and domestic factors combine to push the benchmark below 1,700 for the first time in 20 years, signaling a muted activity and a free fall in stock prices in the 68-year-old market.

East Africa learned that the drop in turnover on the NSE and the fall of the NSE-20 Share Index to a low of 1,681.8 last week are largely the result of massive selling by fleeing foreign investors frontier and emerging markets seeking safer havens following rising interest rates in the United States and news that Sri Lanka has defaulted on its debt obligations for the first time in its history story.

The situation has been aggravated by events in the local environment, including uncertainty surrounding the upcoming general election, weakening currency, shortage of dollars, rising cost of living and general investor apathy. individuals.

The last time the benchmark, which measures the performance of 20 blue-chip companies on the NSE, fell below 1,700 was in 2002, when it hit 1,087 from 1,935 in 2003.

Perceptions of a weaker currency are compounding the problem, Paul Mwai, deputy chairman of the NSE, told The EastAfrican last week.

The IMF has opened bailout talks with Egypt and Tunisia, two major wheat importers from Russia and Ukraine, and with Pakistan, which has imposed power cuts due to high energy costs imported. Turkey is battling 70% inflation but has so far avoided the need for a bailout.


Dollar shortage

The scarcity of US dollars in the Kenyan economy has negatively impacted trading by foreign investors who control over 50% of daily trading activity in the stock market.

NSE has historically recorded foreign investor participation in the range of 60% to 70% between 2019 and the first half of 2021.

But their activity on the stock exchange fell to 54.88% in the three months to March this year from 57.73% in the three months to December 2021, according to data from Kenyas Capital Markets Authority.

Cytonn Investments attributes the price declines of most stocks, especially large-cap stocks on the exchange, to the surge in sales.

In May, the Federal Reserve took steps to bring soaring US inflation under control by announcing the largest interest rate hike in more than 20 years.

The Fed’s benchmark rate was raised 0.5 percentage points to a target rate range of 0.75% to 1%, the biggest increase since 2000.

This followed a 0.25 percentage point increase in interest rates in March this year.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]