It is no secret the Nairobi Stock Exchange has underperformed in recent times. Many investors have observed their share value eroded overtime as many stock stocks take massive dips. Foreign investors have also taken off. A spot check by The Trading Room reveals most segments experienced negative growth in the 2019/2020 year. In 2020, the COVID19 pandemic accelerated the downfall further. The tough business environment that featured layoffs and ultimate closures forced many businesses to declare profit warnings (Listed companies are supposed to issue a profit warning when they expect their profit to decline by 25% or higher compared to the previous year).
Despite the gloom, long-term and first-time investors may want to jump in at the current depressed prices and make massive investments. The World Bank has projected the Kenyan economy to grow by at least 5% this year as the COVID19 pandemic subside, countries learn to adapt, COVID vaccines roll out, and most economies reopen.
Why not take the plunge? visit the nearest NSE broker to open a CDS account and start trading right away. You may want to consider former blue chips, like Nation, Barclays,Scangroup, among others.