NSE performance wobbly as bourse enters H2

Kenya's stock market has been experiencing significant volatility in recent weeks as global uncertainties continue to impact the securities market. The Nairobi Securities Exchange (NSE) has seen the currency fluctuate, with some stabilization observed in the past week. To provide insight into the market's performance and the outlook for the future, Erick Mokaya, Founder of Mwango Capital, joined CNBC Africa for a discussion. Mokaya highlighted several key factors contributing to the current market conditions. One of the significant developments in the market is the government's efforts to raise funds. Mokaya mentioned a recent issuance of 50 billion euros in infrastructure bonds, with two of them being reopened. However, he noted that the performance of these bonds in the previous financial year was below expectations, leading investors to adopt a cautious 'wait-and-see' approach. Several uncertainties are also impacting the market, including the formation of a new cabinet and the appointment of a new Treasury Cabinet Secretary from the opposition. Additionally, the appropriations bill in parliament and the government's borrowing plans to compensate for the absence of a finance team are key areas to monitor. Mokaya emphasized the importance of observing the International Monetary Fund's (IMF) stance and its potential implications on the market. Given the complex dynamics at play, Mokaya expressed his pessimism about the immediate future of the market, suggesting that ongoing uncertainties are likely to keep investors on edge for some time. The market's performance will depend on how these various factors align and the decisions made by the government and international bodies moving forward.