The Nairobi Securities Exchange dropped 65.6 billion shillings in the first two days of this week as pressure by foreign sales overtakes the anticipated rally ahead of the dividend season. Market capitalization fell from 2.56 trillion Kenyan shillings to 2.69 trillion shillings as trading began on Wednesday.
Safaricom the biggest company listed at the stock exchange and whose fortunes often dictate the direction of the market, lost 58 billion shillings in two days, leading to the general bearishness at the market. Stocks closed at 36.05 shillings, down from 37.50 when it opened on Monday, despite having only ten days until the March 17 date when it’s expected to close its register for a 0.64 shilling per share interim dividend to be paid on March 31.
Safaricom’s closure comes against the backdrop of sell-offs of global equities as a result of Russia’s invasion of Ukraine which has frightened investors into safe have investments such as US bonds, the dollar and gold.