Foreign investors seem to be exiting quickly. The stock market seems ready to take a beating. This is the disadvantage of having too much foreign investor influence in the stock market. Given the collapsing equities in Europe and North America, a massive sell off might start right here in the NSE with disastrous results;
- huge devaluation of stock prices
- devaluation of the shilling as foreigners try to convert their money to USD
- devaluation of the shilling brings about trouble for companies servicing foreign debt

Remember, when foreign markets sneeze, we catch a cold.

[quote=KulaRaha]Wow, todays facts:

as at now,

Foreign purchases: 338m
Foreign sales: 421m
net foreign outflow: 83m

Doesnt look like a wholesale exit to me...thats about $1m only...small change.[/qoute

@kularaha
I hope this doesn't happen. I just see ominous signs that things might go this way. There's probably no cause for worry but there is a real danger of this happening and as an investor it's important to be ready.

Am praying for wanjiku to check in big time, she could hold the market through

In 2009 there was net foreign outflow from all markets given major cashflow issues at home. Plus there was shareholder pressure to exit from "high risk" assets, given recent losses on derivatives.

I think risk profiles have changed this year. Plus most offshore banks/funds etc are in the green so not so much pressure.

Believe me nse will not be spared, its kobil, banks and scom etc have been proping it, how long? In times like these you use dividends to survive.

@vvs sina pesa, i have decided to watch from the sidelines and see how low the market goes as i look for cash. I really would enjoy selling to the foreignors when they come rushing in and buy from them as they run away. I have learnt now to consider cash as part of my portfolio at any given time.

too late. the prices are already starting to dip across the board

It's not entirely a bad thing for them to be exiting like this. It gives us all an opportunity to pick up some shares at an affordable price after all we all know they'll be back sooner than later.

But have they said that they will NEVER come back?

@The deal.. What informs your statement of a high by friday?

As Kibaki would say.. 'Kwani wataenda miaka ngapi?.. Wataenda pale pale halafu mwisho watarudi hapa hapa.. Ooh yes oooh yes.. Na wakirudi tutawashika tuwachaapa.. Vibooko..halafu tutawafungia.. Hakuna mtu anafikiria atatoroka hii Kenya yetu bila kurudi.. Si watarudi tu.. Wataruudi.. Waataruudi.. Oh yes kuenda wameenda lakini kurudi watarudi ndani ya hii kenya yetu moja..'

on a more serious note, as the exit we remember that cash is king!