Investors React To Uhuru’s Re-election With Stock Market Hitting 14-Month High

Investors in Kenya have welcomed President Uhuru Kenyatta’s re-election with the country’s main stock market rising 2.51 percent on Monday to a 14-month high.

The NSE-20 index has risen nearly 7 percent since the election last Tuesday when Uhuru was declared wier ahead of rival Raila Odinga.

Read: U.S., China Among World Leaders Congratulating Uhuru On Re-Election

An independent trader and analyst in Nairobi, Aly Khan Satchu, said the market worried that Raila, who identifies himself as a social democrat, would have changed the economy’s course.

He said the markets were concerned with Raila’s “leftist Magufuli-like tilt” which would have eroded Kenya’s hard won free market credentials.

Kenyan shares had slightly lagged this year’s gains in other African bourses like Nigeria as investors waited to see how the election would go, market participants said.

“This means there is a toe of liquidity that is set to enter the market and underpin valuations,” Satchu said.

Uhuru, whose family owns a range of businesses, engaged regularly with the business community in his first term to try to boost economic growth and job creation.

The Kenyan shilling got stronger on Monday to touch an intra-day high of 103.65 per dollar, from 104 before the election. The Kenyan dollar bonds also rallied after the election.

Monday’s gains by the blue chip index were led by Kenya Power, which was up 9 percent with lender KCB Group, up by 8 percent.

Ken Minjire, the head of securities at Genghis Capital, said investors had been encouraged by endorsements of the election by various foreign observer groups. He said they are more or less confident in the stability of the country now.

See Also: Reactions Over Uhuru’s Win: “Kenya Is Not Worth Dying For”

With the stock market picking up and market analysts expecting an inflow of investors, there have been reports of violence in some parts of the country.

At least 24 people have been killed in protests against the outcome of the election, mainly in two Nairobi slums.

Kenyans are hoping to not see a repeat of the 2007 post election violence which kicked off after Raila also lost. More than 1,200 people were killed with the economy also receiving a huge blow.