Philip Wahome
14 October 2008
Nairobi — Panic selling across the counters saw trading at the Nairobi Stock Exchange dip to a 3-year low after Capital Markets Authority's decision to restructure Discount Securities.
Since then, the announcement that Capital Markets had intervened with regard to Discount Securities witnessed a flood of late selling.
This is despite news that the market, and especially Safaricom's share price, had started to find its footing until the ill-fated announcement.
Trading also remained heavily skewed on mobile service provider Safaricom shares as supply continued to outstrip demand.
The last time the Nairobi Stock Exchange 20-Share Index dipped that low was in September 23, 2005 when it settled at 3791.5 as Safaricom accounted for 86.42 per cent of the total traded volume yesterday.
Of the 23 million shares that changed hands, Safaricom's accounted for 20 million that were traded at between Sh3.90 and Sh4.35.
Though the NSE 20 Share Index ended 15.83 points lower than a day before to settle at 3799.81, the points are a three-year low of September's 2005 that ended on 3791.57.
The Nairobi Stock Exchange All share Index shed 0.80 points to stand at 78.12.
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