Investors with the local bourse lost Ksh173 billion worth of paper money as coronavirus pandemic led to panic selling.
Listed firms also lost 14 per cent of their value last month according to the Capital Markets Authority (CMA).
CMA says foreign investors dominated market activities in the period January to march accounting for more than 80 per cent of all transactions.
Even before the pandemic, the NSE was on a free fall, with market capitalization plunging from a high of Ksh5.2 trillion in 2013, to the current Ksh2.2 trillion shillings.
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The poor performance has been attributed to bad economic environment leading to mass exodus by most investors.
The market has also been on a dry spell with no major initial public offer in the last seven years.
According to the CMA, the value of listed firms at the bourse fell by 14.5 per cent from Ksh2.36 trillion in March 2019 to Ksh2 trillion registered at the end of 2020.
The quarterly market soundness report, average foreign investor participation during the quarter averaged at 61.2% which is a 1.82% decrease from 63% recorded in Q4.2019.
The Kenyan market continues to be highly driven by foreign participation as they seek higher yields in alternative assets within emerging markets.
In the quarter under review, net foreign portfolio levels amounted to a total outflow of 844 million shillings compared to a total inflow of Kshs 262 in net foreign inflows during Q3 of 2019.
CMA says it is in talks with several companies who have shown interest in listing on the market.
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