As investor sell-offs continued on Tuesday, the value of stocks listed on the Nairobi Securities Exchange (NSE) fell below Ksh.2 trillion.
The NSE market capitalization was Ksh.1.99 trillion at the close of trading on Tuesday, down from Ksh.2.01 trillion on Monday, according to data from the stock exchange.
Since 2016, this is the exchange’s lowest stock valuation in nearly six years.
The NSE market cap has closed above Ksh.2 trillion each year since 2016, according to data from the Capital Markets Authority (CMA), with the most recent high-close being Ksh.2.59 trillion last year.
As a result of a mix of global shocks and local fears, investors have lost roughly Ksh.600 billion in value from their holdings thus far in 2022.
Large-cap stocks such as Safaricom, Equity Group, KCB, Cooperative Bank, and Bamburi have all suffered as a result of substantial foreign investor sell-offs this year.
With the performance of the Nairobi All Share Index (NASI) plummeting to negative 20.7 percent last week, the NSE officially entered bear territory for the year.
As of May 20, both the NSE 20 and NSE 25 share indices have lost 12.2% and 17.8%, respectively, year to date.
So far in 2022, foreign investors have been net sellers, with a net selling position of Ksh.5.8 billion ($49.3 million).
Despite this, the bear market offers opportunities for newcomers who want to buy low and sell high because stock prices are drastically discounted.
Safaricom’s stock, for example, is trading at Ksh.26.35 per share as of Tuesday’s close, well below its year high of almost Ksh.39 per share.
Equity, KCB, and Standard Chartered have all had their shares prices drop to Ksh.42, Ksh.35.95, and Ksh.124.25, respectively.
NSE equities are currently selling at approximately 43% below their