The Nairobi Securities Exchange (NSE) has particularly benefited from the disillusionment of the foreign players with the Nigerian capital market, particularly the dedicated Africa funds, which have limited investment destinations.
The Nairobi Securities Exchange has witnessed alot of activities particularly from the foreign investors who have accounted for over 65% of the market activitity for the last two weeks.Nairobi’s Benchmark index last week crossed the 4000 benchmark point, a clear indication of the interest & confidence from the foreign investors. Read; Nairobi Securities 20 Share Index Crosses 4000 Benchmark Point
Below is a chart showing the performance of the three all share indices for Kenya, Nigeria & South Africa for the last three months;
Another factor according to analysts at FBN Capital was the Central Bank of Nigeria’s (CBN’s) exchange-rate policy and acute foreign exchange shortages.
Also, the foreign investors are rushing to cash in from dividends from the just released Full Year 2015 results from the Banking sector.
An analysis of the three Exchanges showed that the Nigerian Stock Exchanges is the worst performing of the three African indices intermittently tracked by investors.
The Nigeria Stock Exchange All-Share Index (ASI), which recovered from a low of 21.6 per cent year-to-date, dipped further to 622.62 basis points to close at 25,277.29 basis points, representing 2.40 per cent decline.
Conversely, analysts also believe the Johannesburg Securities Exchange (JSE) performance of 1.7 per cent (YTD) has defied the sluggish economy, the mounting pressures surrounding the Zuma presidency and rising unemployment in the mining industry.
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