Market Mirrors Mixed Sentiment as Investors Sift Through Earnings And Rights Issues

The Nairobi Securities Exchange (NSE) closed today’s trading session on a note of cautious optimism, reflecting a marketplace attempting to digest recent corporate actions and full-year results against a backdrop of declining turnover. The overall sentiment remained fragmented, suggesting selective investor participation shaped by underlying counter-specific developments and macroeconomic caution.

A closer look at the indices reveals a mixed performance. The benchmark NASI and the N10 both edged upwards by a marginal 0.1%, signaling a soft risk-on sentiment, particularly in large-cap and liquid stocks. The NSE 20, a narrower gauge of market performance, fell 0.6%, dragged down by price declines in heavyweight constituents. Meanwhile, the NSE 25 held steady, showing no net change—a clear reflection of balancing market forces.

Equity turnover plummeted to USD 1.4 million, registering a steep 89.8% decline from the previous session. The sharp drop in turnover points to thinning investor participation, though domestic players stepped into the void left by foreigners. Local investors accounted for 69.8% of the total turnover, a significant climb from yesterday’s 56.8%, highlighting a resurgence of retail and institutional local appetite despite the lower market breadth.

In terms of activity, Safaricom dominated the trading floor, contributing a commanding 55.8% of the day’s turnover. The telco giant’s stock price nudged upward by 0.6% to settle at KES 17.40, suggesting sustained interest among value-driven investors likely positioning for long-term gains amid its evolving fintech narrative.

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The banking sector exhibited mixed signals. Standard Chartered slipped slightly by 0.2% to KES 300.50, perhaps a minor profit-taking response after recent rallies. Co-op Bank, in contrast, gained 0.3% to KES 16.00, reflecting investor confidence in its resilient fundamentals. I&M Bank traded flat at KES 30.00, maintaining stability amid broader volatility.

The utility and manufacturing counters painted a bleaker picture. Kenya Power lost 2.3% to end at KES 6.04, extending a bearish run as structural concerns continue to weigh heavily on the stock. BAT Kenya also fell slightly by 0.1% to KES 369.50, with foreign exits contributing to the drag.

BOC emerged as the top gainer of the day, surging 6.3% to KES 85.00, buoyed by strong FY24 results that appear to have exceeded market expectations. On the flip side, Sanlam tumbled 5.6% to KES 9.08, becoming the day’s worst performer, following the closure of its rights issue book—often a period that triggers temporary dilution fears among investors.

EABL attracted notable attention after its stock dipped 1.2% to KES 168.00, marking its lowest trading level since December 4, 2024. The brewer’s sustained price erosion may reflect investor jitters over its cost pressures and muted earnings outlook.

Foreign investors maintained a net selling position, exiting with outflows worth USD 79.5k. Jubilee Holdings led foreign inflows, indicative of bullish sentiment possibly tied to its diversified regional operations. Meanwhile, BAT bore the brunt of foreign selling, likely linked to sustained ESG concerns and reduced appetite for tobacco counters.

In summary, today’s trading session encapsulated a cautious market navigating through earnings, corporate actions, and subdued foreign interest. The surge in local participation hints at latent investor confidence, albeit selectively deployed. As earnings season progresses and macroeconomic signals evolve, the market is poised for a more defined directional trend—though today’s data suggests a slow but deliberate shift in positioning across key sectors.

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