Shareholder wealth at the Nairobi Securities Exchange slipped below the Sh2 trillion mark Thursday as large counters recorded price drops.
Market capitalisation dropped by Sh13 billion Thursday to close at Sh1.99 trillion as the bear run continued ahead of unveiling lower company earnings.
The equities market has started the year on a weak note with the indicative 20 share index five per cent down since ushering the New Year.
The NSE 20 and NASI index declined 1.14 per cent and 0.66 per cent respectively to stand at 3,835.78 and 141.77.
Safaricom, the largest listed company at the bourse was on the losing side joined by beer maker East African Breweries Limited, cigarette producer BAT and top lenders KCB and Equity.
The drop in share prices has created good bargains for investors looking to enter the market. Foreign investors, viewed to be more technical than local ones, have returned to the market as net buyers in the hope of raking in capital gains when the market recovers.
Investors in equities make money from price changes and dividend payout.
“Foreign investors assumed a net buying position by accounting for 82.6 per cent of total market buys and 74.2 per cent of market sales,” said Dyer and Blair.
Fifteen listed companies have already issued profit warnings pointing to a year of lower dividend payouts.
