stock market
stock market

The Nairobi Securities Exchange (NSE) is facing another bad year as trading declined for the third straight quarter in the period ending September, new data showed on Tuesday.

The data from the NSE indicated that equity turnover and all key indices declined during the quarter, with the fall blamed on global jitters as foreigners comprise the bulk of traders at the bourse.

Turnover in the three months declined 8 percent to close at 30.6 billion shillings (300 million U.S. dollars), down from 326 million dollars in the previous quarter and 457 million dollars in quarter one.

The benchmark NSE 20 share index declined 7.6 percent as the All Share Index went down 3 percent and NSE 25 Share Index 3.1 percent.

The decline of the indices in the quarter, just as in the previous ones, was occasioned by a fall in prices of various stocks.

“The equities market performance during the quarter was shaped by declines in large capitalization stocks such as Bamburi, Equity Group, and Safaricom, which declined by 18 percent, 3.9 percent, and 2.1 percent, respectively,” said Cytonn, a Nairobi-based investment firm.

Analysts have further blamed the decline of the market to investors shifting to fixed-income securities at the debt market, which are offering better returns.

Treasury bills remained oversubscribed during the quarter, with the average subscription rate for the 91-day bill coming in at 107 percent and the 364-day paper got a subscription of 163 percent. Enditem

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