June Sh113m inflows rev up NSE sentiments

Nairobi Securities Exchange (NSE) marked a significant milestone in June witnessing the first net capital inflow of Sh113 million since February 2022.

Compared to the first quarter, the second quarter experienced a reduced foreign portfolio outflow of Sh1.4 billion.

“June 2023 marked the first instance where the Nairobi Securities Exchange marked the first instance since February 2022 where the market observed a net capital inflow of Sh113million,” CMA said in its latest quarterly market update.

The development has been met with optimism by investors and market analysts, signalling a potential turning point for the Kenyan capital market.

“Discussions are ongoing with investors to address their perception on barriers to foreign investors in Kenya,” said CMA. The NSE, which plays a crucial role in the country’s financial landscape, has been facing headwinds over the past year with economic uncertainties, coupled with the global impact of the COVID-19 pandemic forcing cautious sentiments by investors.

This led to a series of net capital outflows, causing fluctuations and volatility in the market. However, the recent net capital inflow suggests renewed investor confidence and interest in Kenyan equities.