[2008-11-06]  Foreign investors expected to return to bourse
The last five months have witnessed flight of foreign money from the stock market, sending share prices to a three-year-low.

This has been followed by local speculators picking shares at bargain prices.

And with the increased visibility of Kenya in the world arena, international investors are expected to set their sights on the local stock market once again.

But even then, market analysts say that the jury is still out on when long term foreign investment will find its way into the NSE. “We need a balance of short term and long term investors,” said Mr Eric Kimanthi, an analyst at Kestrel Capital, a local stock broker.

Mr Kimanthi said that short-term investors would provide liquidity, while long- term ones would bring with them stability as their funds are held longer in the market.

Some look out signs for long- term investments are a return of foreign investors through hedge funds, as well as the local political climate, analysts say. Reservation of 20 per cent stake for foreign investors, in the much published Safaricom initial public offer was seen as a move that could reduce volatility.

Source: Businessdaily