Kenyan Stocks Fall Most in Six Weeks as Attack Deters Investors

Updated on

Kenyan stocks retreated the most in almost six weeks after the deadliest attack in the East African country since 1998.

The FTSE NSE Kenya 25 Index, a gauge of the most-liquid shares on the Nairobi Securities Exchange, fell 1.2 percent to 226.69 by the close in the city, the largest decline since Feb. 26. The measure’s two-day retreat was the most since Dec. 19 following the April 2 attack on Garissa University College. The country’s bourse was closed for the Easter holidays on April 3 and 6.

“The security situation in the country is an issue of concern and will continue affecting the performance of stocks,” Eric Munywoki, a research analyst at Nairobi-based Old Mutual Securities Ltd., a unit of Africa’s largest insurer, said by phone on Tuesday.

At least 147 people, most of them students, died when al-Shabaab gunmen stormed the campus in northeastern Kenya. The raid, the deadliest since al-Qaeda bombed the U.S. Embassy in the capital, Nairobi, was at least the fifth massacre by al-Shabaab since it stormed the upmarket Westgate shopping mall less than two years ago.

Safaricom Ltd., the mobile-phone operator that’s the biggest company on the index, fell 4.2 percent to 15.90 shillings. Kenya Airways Ltd. dropped 1.3 percent to 7.85 shillings, the lowest since Nov. 20.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE