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.