Analysts and fund managers expect Kenya’s Nairobi Stock Exchange (NSE) to recover in 2009 after its main index lost some 35 percent this past year.  Banking, manufacturing and retail sectors will lead the recovery, posits Maurice Opiyo, economic analyst at Old Mutual Asset Management.  Banks in particular will be helped by lower cash ratio requirements and by the low interest rate environment (allowing banks to lend more) created by the central bank in December when it cut rates despite the fact that core inflation is running at double its target.  Moreover, the nation’s banking sector “doesn’t have sophisticated products, and they don’t lend externally, so they are not exposed to any of the risks,” noted Opiyo. 

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