NAIROBI, Sept. 19 (Xinhua) -- A bear-run at the Nairobi Securities (NSE) has wiped out 5.6 billion U.S. dollars of investors' wealth in the last five months.
Market capitalization, which measures investors' wealth, stood at 23.3 billion dollars on Tuesday, down from 28.9 billion dollars at the end of April.
A number of stocks at the market are currently trading below the initial public offer price after maintaining steady decline in the last months.
Some stocks whose prices have declined to sell below the initial public offer price are Kenya Power (0.05 dollars), Mumia Sugar (0.006 dollars) and Nation Media Group (0.73 dollars).
Analysts have noted the wiping out of investors' wealth as one of the worst at the Kenyan bourse.
The decline is attributed to poor performance by blue-chips, which has seen most foreigners exit the market.
According to Cytonn, a Nairobi-based investment firm, part of the woes at the bourse is attributed to uncertainty over the capping of interest rates on loans that were imposed two years ago.
