Kenya’s Finance and Agriculture industries have been the most resilient sectors during the pandemin and are mooted to attract foreign capital once investors are ready to invest again, according to George Asante ,Absa Group LTD Head of global markets for regional operations.
The Nairobi Securities Exchange all share index has dropped 16% year to date with the main gainers being agricultural firms Eaagad LTD and Sasini LTD. Bamburi Cement and WPP Scangroup have been the laggards.
Investor criteria for investment is turning to the ease of trading and exiting markets with the emphasis on which sectors are going to emerge faster out of the crisis and which are going to struggle.
Foreign participation accounted for about 67% of stock trading on the Nairobi Security Exchange during the third quarter , from 65% in the previous three months according to the markets regulator.
Kenya is poised to maintain its position as an investment destination for foreign investors.
Absa Group LTD head of global markets for regional operations George Asante has implored the Kenya Market Authorities to improve laws that will encourage the development of products that diversify the customer base into the Informal sector . He also urged fund managers to target higher returns rather than using Treasury bill rates as a benchmark.
Setting the right target will ” force a lot of innovation in a very positive way so asset managers begin to think outside the box and begin to think about opportunities to create value”, Asante said