Nairobi security exchange benchmark indices indicating red.[Photo /business daily. ]
The Nairobi security exchange (NSE) has been ranked the worst performing bourse market in the world according to the latest MSCI Indices tracking frontier markets.
This is the fourth time NSE has been ranked among the worst performers even as the NSE's benchmark indices continue to indicate red the last five consecutive weeks.
In a weekly market report, the standard investment bank noted last week that shares at the NSE dropped in all categories with NSE 25-share index dropping by 1.8 per cent, NSE all-share index dropped by 2.7 per cent to 154.93 points and NSE 20-share index went down by 2.3 per cent to 3,543 points.
A weekly report by capital market authority(CMA) on Friday last week also showed that the foreign investors have cut down their participation in the Nairobi's bourse market.
They noted that the investors in the last three months to September have been concentrating on the bond acquisition thus pushing the performance of the bonds to Ksh 108 billion which is 44.6 percent higher as compared Ksh 74 billion realised last year at the same period.
The capital economists added that the current political situation is worrying noting that country could be heading to chaos and violence as witnessed in 2007, where greatly economy was negatively impacted.
“The latest developments all suggest that the country’s chance of avoiding a violent (and economically painful) crisis is dwindling,” noted the Capital Economics in a report.
The poor performance at the Nairobi's bourse market has been attributed to the protests , escalating political temperatures and the confusing reports by the IEBC ahead of next polls that has created tension and unconducive business environment.