Abacus Wealth Management

Some Factors To Look-out For Before Investing

The end of trading yesterday saw the 2 banks under our watch become top traders by volume. There was no change in price for either. Operations at the Nairobi Securities Exchange (NSE) saw both the All-share and the 20-share indices closed higher at 92.59 points and 4158.38 points respectively. So what factors lead to such changes? We shall not focus on any specific counters today. Instead, we will mention some of the causes of price change in the market.

Our securities exchange is considered a frontier market, not an emerging one. That we have it in our Kenyan financial system is because we need to have it. Efficient markets are characterized by homogeneous information meaning that information should be available to everyone. The Kenyan market is quite far from that but steps are being followed to bring it to global standards. For now, one can look out for these 3 factors if they want to sink their teeth into the securities exchange.

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