Foreign investors took out KSh 10.2 Billion from the Nairobi Securities Exchange (NSE) between April and June this year.
This outflow is compared to an inflow from foreign investors into the bourse of KSh 1.2 Billion between January and March 2020.
According to a statistical report by Capital Markets Authority(CMA) Q2, for the period between April and June 2020, this drastic market sell-offs by foreign investors can be attributed to the panic trading brought about by the COVID-19 pandemic.
This quarterly report indicates that foreign investors, who dominate trading at the bourse, accounted for 64.59% of its activities in Q 2, 2020, compared to 61.14%recorded in Q1. 2020, indicating a 3.45% increase in foreign investor participation during the quarter.
In June 2020, foreign investor purchases at the NSE were worth KSh 6.958 Billion against sales, amounting to a total of KSh 8.648 Billion with participation at the bourse by foreigners standing at 63.43%.
There was a foreign investors cash outflow of KSh 4.098 Billion in April, KSh 4.462 Billion in May, and KSh 1.690 Billion in June 2020.
Available figures indicate that 19 listed firms at the NSE have a shareholding structure dominated by foreigners.
These include Absa, Bank of Kigali, Standard Chartered Bank, Stanbic Holdings, ScanGroup, KenGen, Total, BOC, BAT, New Gold Kenya, Bamburi, Nation Media Group, Diamond Trust, TPS(Serena), Jubilee Holdings, Liberty Holdings, and NSE.
Outlook for Q3 remains positive for the primary debt capital with more Treasury Bond issues expected,
The NSE could also experience depressed activity if more foreigners exit or listed firms post lower earnings.
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