Kenyan Stocks Retreat for a 10th Day, Longest Losing Streak in 1 1/2 Years
Kenya’s main stock index fell for a 10th day, led by the local unit of Diageo Plc, the world’s largest liquor maker, and Bamburi Cement Co., a subsidiary of Lafarge SA, the world’s biggest cement maker.
The 55-member Nairobi Stock Exchange All Share Index dropped 0.3 percent to 78.55 at the 3:05 p.m. close in Nairobi, bringing its decline in the past 10 days to 7.1 percent. It’s the longest series of decreases since March 11, 2009.
“There are some fund managers who are selling because of the new regulations on retirement benefits,” which pull pension money out of the stock market, James Mose, a research analyst at Nairobi-based CFC Stanbic Financial Services Ltd., said in a phone interview today.
In October, the government allowed people retiring before age 55 to access half of the pension contribution from their former employers immediately, provided they worked for three years, the Daily Nation reported Oct. 30. The move made it possible for “hundreds of poverty-stricken Kenyans” to access “millions of shillings in frozen pensions,” the newspaper reported.
Kenya’s All-Share Index has still advanced 35 percent this year, outpacing a 14 percent gain in the MSCI Frontier Markets Index during the same period.
Bamburi Cement, the biggest maker of the building material, retreated 1 percent to 193 shillings.
East African Breweries Ltd., 43 percent owned by Diageo, slumped for the third day, losing 0.5 percent lower at 207 shillings.
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