Byline: Luke Mulunda
Last year's bullish trading gave Nairobi Stock Exchange investors one of its biggest gains since 2007. The 20-share index rose 35 per cent in 2010, with most counters adding value as economic recovery flirted with renewed confidence in the market to buoy equity traders.
Now four factors - politics, drought, oil prices and the Japanese earthquake - are putting stock investors under great stress. For more than three months, stocks have tanked, and good corporate earnings have done little to save investors from mauling by the bears.
How long this will take is not clear, as political turmoil in North Africa and the Middle East continue to strain oil supply while drought threatens agricultural output locally, both of which have had a big impact on inflation, which determines what is left on individuals budgets for investment.
Investment analysts say if these two are managed, the market …