Nairobi Securities Exchange Closes Mixed Amid Low Turnover And Sustained Foreign Selling

The Nairobi Securities Exchange (NSE) ended Thursday’s trading session on a subdued and mixed note, reflecting lingering caution among investors ahead of key economic data releases next week.

Across the board, equity indices closed lower with minor losses, underlining the tepid investor sentiment. The benchmark Nairobi All Share Index (NASI) edged lower by 0.27% to close at 125.80 points, while the NSE 20 Index remained largely flat, shedding a negligible 0.02% to settle at 2,151.50 points.

Meanwhile, the NSE 25 Share Index slipped 0.19% to close the session at 3,421.61 points. The N10 Index, a proxy for the top 10 listed firms by market cap, also eased by 0.32%, signaling broad-based market softness.

On a month-to-date basis, losses have deepened, with the NASI and N10 down 3.54% and 0.93% respectively, indicating a persistent risk-off mood among investors. However, a longer-term view still shows resilience: year-to-date, the NSE 20 and NSE 25 indices have appreciated 7.01% and 0.55%, respectively, while the NASI remains 1.88% higher from the start of the year.

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Turnover Dwindles as Local Investors Reassert Dominance

Market liquidity was significantly lower compared to the previous session. Equity turnover contracted by 31.3% to USD 0.9 million, reflecting a marked slowdown in trading activity.

Local investors reasserted their dominance on the bourse, accounting for 73.1% of total activity — a sharp surge from 36.5% recorded in Wednesday’s session. The spike in local participation suggests a tentative rotation back into the market by domestic players as foreigners continued to pare down their exposure.

Total market capitalization stood at approximately USD 15.3 billion, with a daily turnover of KES 116.6 million, highlighting the relatively light volume environment prevailing at the NSE.

Top Movers: KCB Group Anchors Turnover, Safaricom Slips

KCB Group was the day’s standout counter, driving market liquidity and accounting for 39.3% of the day’s total turnover. Despite its prominence in volume terms, KCB’s share price remained stable, closing unchanged at KES 38.50.

Among the gainers:

I&M Group advanced 2.4% to close at KES 30.25, emerging as the day’s best-performing top mover.

Standard Chartered Bank Kenya recorded a marginal gain of 0.1%, closing at KES 300.25.

Co-operative Bank remained flat at KES 16.00, reflecting a lack of fresh catalysts for movement.

On the losing side, market heavyweights dragged down sentiment:

Safaricom declined 0.9% to settle at KES 17.20, closing as the worst-performing top mover for the day.

Equity Group dipped 0.4% to KES 45.45, maintaining a subdued performance amid reduced foreign interest.

Among small and mid-cap counters:

Flame Tree Group led the gainers’ board, rallying 7.6% to close at KES 1.27 following renewed buying interest. On the flip side, WPP Scangroup emerged as the leading laggard, falling 6.5% to KES 2.75. The steep decline followed the company’s release of its full-year 2024 financial results, which revealed an alarming earnings per share (EPS) contraction to -1.17, compared to 0.31 in FY23, raising concerns about the group’s profitability outlook.

Foreign Investors Remain Net Sellers

Foreign activity remained tilted towards the sell-side, as offshore investors registered net outflows of USD 366.2 thousand.

KCB Group was the primary target of foreign selling pressure. Interestingly, the Nairobi Securities Exchange (NSE) counter attracted foreign buying, signaling selective interest in financial services linked to market infrastructure.

Overall, foreign participation remained muted, accounting for approximately 26.9% of the day’s total activity, down sharply from previous sessions.

Outlook: Inflation Data in Focus

Looking ahead, the market’s immediate trajectory will likely be influenced by the release of April 2025 inflation numbers expected next week.

Investors are keenly monitoring inflation trends to gauge their potential impact on interest rates, monetary policy settings, and corporate earnings prospects. A higher-than-expected inflation print could further weigh on equities, while a benign reading may offer a reprieve to battered sentiment.

In the interim, the Nairobi bourse may continue to experience choppy and thinly traded sessions, especially in the absence of significant domestic corporate news or global risk events.

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