Mixed Performance As Market Indices Close In the Green

Indices

The equities market wrapped up the trading session on a mixed note, with select indices recording marginal gains, while overall market sentiment remained cautious.

The Nairobi Securities Exchange (NSE) 10, NSE 20, and NSE 25 indices inched upwards by 0.2%, 0.7%, and 0.4%, respectively, reflecting slight investor optimism in select blue-chip counters. Meanwhile, the Nairobi All Share Index (NASI) closed the day unchanged, signaling a neutral stance from investors regarding broader market sentiment.

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Turnover Surge Driven by Local Investors

A notable highlight of the day was the significant surge in equity turnover, which soared by 87.2% to USD 2.3 million, indicating heightened trading activity in the session. Despite this increase in liquidity, participation from local investors experienced a dip, accounting for 60.2% of the total market turnover, down from the 69.6% recorded in the previous session. This suggests that while domestic investors remained dominant, their level of involvement in the market softened compared to the prior trading day.

Safaricom Takes Center Stage Amid Price Weakness

Safaricom Plc retained its position as the most actively traded stock, contributing a substantial 27.8% of the day’s total turnover. However, the counter’s performance was underwhelming, as its stock price declined by 1.1%, settling at KES 18.50 by the close of trading. This drop placed Safaricom as the worst-performing mover of the session, with the price weakness largely attributed to sustained foreign investor selling pressure.

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Banking Sector Sees Select Gains; EABL Rallies on Foreign Demand

In the banking sector, mixed fortunes were observed across key counters:

Equity Group Holdings registered a 0.7% uptick, closing at KES 48.30, reflecting steady investor confidence in the lender. Stanbic Bank Kenya saw a 0.5% rise, climbing to KES 150.00, supported by mild buying interest.

Co-operative Bank of Kenya remained flat during the session, closing unchanged as investors maintained a wait-and-see approach.

Beyond the banking sector, East African Breweries Limited (EABL) emerged as one of the top gainers of the day, advancing by 1.7% to KES 189.75. The stock’s rally was primarily driven by increased foreign investor accumulation, signaling renewed confidence in the counter.

Top Gainers and Losers

The session saw notable price movements in select mid-cap stocks:

WPP Scangroup Plc emerged as the day’s top gainer, surging by 7.2% to KES 3.57 as investors snapped up shares of the marketing and communications firm.

On the flip side, Flame Tree Group Holdings Ltd suffered the steepest decline, plunging by 9.1% to KES 1.30, making it the worst-performing stock of the session.

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Foreign Investor Activity: Net Inflows Return

Foreign investor participation was net positive in the session, with inflows totaling USD 101,000. Stanbic Bank saw heightened selling pressure from foreign investors, whereas EABL led the buying charge, attracting strong demand from offshore investors.

Market Outlook

The day’s market activity reflected a mix of cautious optimism and selective buying in blue-chip counters. The strong rally in EABL and banking stocks signals confidence in fundamentally sound companies, while Safaricom’s decline underscores the impact of foreign investor sentiment on the market’s heavyweight stock. Going forward, investor focus will likely remain on earnings announcements, macroeconomic trends, and foreign investor participation in key counters.

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