Investor wealth at the Nairobi Securities Exchange (NSE) fell by Sh38 Billion on Monday, adding to a Sh92 Billion hit on Friday that followed the nullification of President Uhuru Kenyatta’s win by the Supreme Court.
Sh132 Billion was, therefore, wiped off the total Market Capitalization in two trading sessions.
The NSE 20-Share Index shed 80 points on Monday to close the day at 3,806 points, while the All Share Index closed at 2.6 points lower at 160.3 points.
Investors, primarily foreigners, continued selling off shares especially in blue-chip companies such as Safaricom, Equity and Bamburi.
Foreign investors accounted for 74% of total market activity.
In the banking sector, seven out of 11 listed lenders have seen their share price plunge.
The losses are short-term effects of the ruling as it throws the nation right back into a period of political uncertainty.
According to market analysts, however, a greater dividend will be reaped from the rule of law and independence of institutions in the long-term.
The Independent Electoral and Boundaries Commission (IEBC) has announced October 17th as the date set for the fresh election, a two-horse race between Uhuru Kenyatta and Raila Odinga.
As the stock market continued to reel in the aftermath of the landmark ruling, the shilling recovered from the hit it took on Friday and was stable on Monday.
The market was still in recovery mode from the lethargy that came with the August 8th election.
The announcement of the new date is expected to help markets gain some much-needed stability.
