NSE market dips due to Corona Virus pandemic – KBC

The Corona Virus pandemic continues to poison stock markets across the world causing panic flights and forcing some markets to halt operations. The Nairobi Securities Exchange (NSE) has not been spared either with the market dropping to a decade low last week.

The benchmark NSE 20 share index closed the week 2400 points, the lowest level last seen since 2009 at the height of the global economic crisis.

From the sophisticated markets of NASDAQ and KOPSI to emerging markets like JSE in Johannesburg and NSE in Nairobi, stock markets are on a route.

The Dow Jones Industrial Average plummeted at the opening bell on Monday, sinking by more than 1,800 points.

In the United States, a circuit breaker was triggered on the S&P 500 after it dropped by 7 per cent, halting trading for 15 minutes.

The circuit breaker mechanism kicks in when stocks fall 7% to keep them from free-falling, and to give traders a chance to re-assess.

Anxiety has gripped markets world over since February this year when fears around the corona-virus began to peak.

The NSE has been on a roller-coaster with investors fleeing to safer havens and the bond market.

Last week, anxiety swept the local market, after the NSE plunged to a ten year low of 2,337 points, before a slight recovery on Friday.

The market has been on a free-fall from a high of 5,000 points in 2013.

At the close of business on Friday, the NSE 20 share index was at 2400, a 2.72 per cent increase from the previous week of trading.

According to the market’s monthly report, investors traded bonds worth 47.6 billion shillings during the month, compared to 37 billion shillings in January.

Analysts believe the market is on tenterhooks as the impact of the Corona Virus unravels.

Kenya is yet to report any case of the deadly virus that has killed over 4,000 people worldwide.