Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Stocks fall during political rally, shilling flat

08 July 2014, 09:01

Nairobi - Kenyan shares lost 0.3 percent on Tuesday as investors stayed on the sidelines waiting to see the outcome of a major political rally that caused tensions in east Africa's biggest economy, while the shilling was flat.

Opposition leader Raila Odinga called for a mass rally in Nairobi to highlight a host of grievances including a slowing economy and a spate of militant attacks. Although police hurled tear gas at some protestors earlier in the day, the rally was largely calm by the time markets closed.

On the Nairobi Securities Exchange, the main NSE-20 Share Index fell 16.90 points to close at 4,868.81 points.

Ronald Lugalia, a research analyst at AIB Capital, said some investors had adopted a 'wait-and-see' attitude, preferring to stay out of the market until the rally is over and political risk subsides.

"The investors want to see the outcome of the rally before they continue (investing)," Lugalia said.

Attacks by Somali Islamist group al Shabaab have dented the vital tourism industry and put Kenya on the edge.

Investors have been watching for any signs of political unrest, which in Kenya often happens in tandem with ethnic-based violence. The 2007/2008 post election violence saw about 1,200 people killed and the economy crippled.

At the 1300 GMT close of trade, commercial banks quoted the shilling at 87.85/95 to the dollar amid thin volumes, unchanged from Friday's close.

Duncan Kinuthia, head of trading at Commercial Bank of Africa, said most traders had either stayed out of the market or only traded in the first half of the day.

"We’ve seen very muted corporate activity," said Kinuthia, adding that if there is no escalation in political rhetoric then the local currency should stay in a tight range between 87.50-88 shillings to the dollar.

On the secondary debt market, government bonds valued at 551 million shillings were traded, compared with Friday's 1.69 billion shillings.

- Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Wilson Ochieng
DP Ruto accuses Raila of selling ...

DP Wiliam Ruto has castigated Raila Odinga for seeking western support to fund his 2017 election bid. Read more...

Submitted by
William Korir
Peter Kenneth announces Uhuru 201...

Peter Kenneth has announced that he will support President Uhuru Kenyatta in the 2017 elections. Read more...

Submitted by
Wilon Ochieng
Labour Party to dump both Jubilee...

The Labour Party of Kenya is likely to avoid supportoing both the CORD and Jubilee factions during the 2017 General Elections. Read more...

Submitted by
William Korir
Ukambani MP quits Jubilee, to run...

An Ukambani MP has quit the Jubilee Party, citing voter apathy as his reason behind leaving the ruling coalition. Read more...

Submitted by
Victor Tinto
Government launches probe into Po...

The government has launched an inquiry into the circumstances that could have led to two National Police Service helicopter accidents in August and September this year. Read more...

Submitted by
Wilwon Ochieng
Deputy Governor's ally found with...

The EACC has recovered KES 2 million in fake currency from a close ally of Deputy Governor for Tharaka Nithi Eliud Mati. Read more...