Markets Close The Day In The Red As Safaricom Takes Over Counters As Top Mover

The market closed the day in the red, with NASI, N10, NSE 20, and NSE 25 down 2.6%, 3.1%, 2.2%, and 2.8%, respectively.

At the same time, Equity turnover rose by 42.4% to close the session at USD 2.9m. Local investors dominated market activity, accounting for 60.7% of trading activity, up from 50.9% yesterday.

During the day, Safaricom was the day’s most traded top-mover, accounting for 35.5% of the day’s turnover. The counter’s price function tapered by 2.0% to KES 17.25, mainly driven by foreign investor activity.

Amongst the top mover banking stocks, KCB Group, Equity Group, and StanChart dipped by 7.1%, 3.7%, and 2.3% to KES 35.30, KES 42.55, and KES 294.50, respectively. KCB Group emerged as the worst-performing mover, partly attributable to foreign investor exits.

Kenya Power and EABL eased by 1.0% and 3.0% to KES 6.02 and KES 180.00, respectively. Kapchorua was the day’s top gainer, up 7.1% to close at KES 225.00. On the other hand, Longhorn shed 7.3% to KES 2.78 – closing as the session’s leading laggard.

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Foreign investors turned bullish, with net outflows of USD 3.1k. Safaricom led the selling charge, while EABL led the buying charge.

In other news, the Central Bank of Kenya’s Monetary Policy Committee (MPC) decided to lower the Central Bank Rate (CBR) by 75 basis points to 10.00% (the fifth consecutive cut) at its meeting on 8th April 2025. In addition, the MPC narrowed the width of the interest rate corridor around the CBR from the current ±150 basis points to ±75 basis points.

This is anticipated to enhance the stability of the interbank rate and align the rate closer to the Central Bank Rate (CBR). In line with this review, the Committee also approved the adjustment of the applicable interest rate on the Discount Window from the current 300 basis points above CBR to 75 basis points, which will be the upper bound of the interest rate corridor.

These decisions aim to stimulate lending by banks to the private sector and support economic activity, and ensure exchange rate stability. The committee noted that global growth in 2024 showed steady recovery however, the outlook for 2025 remained uncertain due to escalating trade tensions, new tariffs, and geopolitical conflicts such as the Russia- Ukraine war and Middle East unrest.

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