The exit of some foreign investors at the Nairobi Securities Exchange(NSE) provides an ideal entry point to local investors keen to enter the bourse.
With the NSE 20 share index falling to below the 2000 points level, the tumbling of stock prices on most counters presents an opportunity for local retail and institutional investors, to buy stocks at bargain prices.
“Our assessment of the secondary market performance indicates a decline in stock prices as indicated in the fall of the NSE 20 share index. We expect mixed performance among listed stocks as some sectors are affected more than others,” said Mr Wyckliffe Shamiah, Acting CMA Chief Executive.
“This exit has created an opportunity for local retail and institutional investors to take advantage of the undervalued shares of listed companies,” adds Mr Shamiah.
On the list of institutional investors expected to take advantage of the undervalued NSE include pension funds, insurance firms and unit trusts. CMA is encouraging investors with a long range investment horizon to buy shares in the blue chip firms.
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