Kenya's bourse indicative index drops to eight-year low

Nairobi Securities Exchange (NSE) 20 Share Index fell 17 points Wednesday to close at a fresh new low of 2,855.81, a level last seen in 2008.

The drop was a continuation from Tuesday, where the benchmark index ended the day at 2,873.02, after declining 32 points. On Monday, the index fell to 2,905.31 from 2,913.84 last Friday.

Stockbrokers blamed the current drop to the continued bear-run that has wiped out value of several large stocks that make the index, including Kenya Commercial Bank (KCB), Equity Bank and East African Breweries Ltd.

Similarly, the All Share Index (NASI) edged 0.52 points lower Wednesday to stand at 122.77 while the NSE 25 Share Index was down 17.82 points to stand at 3,181.92.

Safaricom, Kenya's leading telecom operator, was the day's biggest mover, exchanging 3.3 million shares at unchanged price of 0.18 U.S. dollars. On Tuesday, the telecom moved 12.4 million shares.

KCB and KenGen were the second and third top movers during the session respectively after they moved 3.3 million and 3.2 million shares at declined prices of 0.26 dollars and 0.05 dollars.

Mumias Sugar and Barclays Bank were the fourth and fifth day's movers after transacting 2.1 million and 1 million shares respectively.

In total, some 15 million shares worth 2.5 million dollars were traded from the previous session's 24 million worth 9.7 million dollars.

Foreign investors during the session were net sellers as they cut participation to 52 percent from 83 percent the previous day. Endit