Foreign Outflows And Weak Indices Signal Fragile Investor Confidence At The NSE

The Nairobi Securities Exchange ended the day under pressure as the NASI and NSE 25 both slipped 0.1%, while the NSE 20 remained flat and the N10 eased 0.4%. These small but broad-based dips highlight fragile sentiment across the board, with blue chips struggling to attract meaningful momentum.

Turnover fell 41.1% to USD 2.6m (KES 337.5m), underlining reduced appetite from investors. Local investors, however, stepped up, driving 62.1% of total activity compared to 41.5% the previous session. This shift shows rising domestic conviction even as foreign investors pulled back, raising concerns over capital flight.

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Foreign investors registered net outflows of USD 590.8k, led by heavy selling on the Absa Gold ETF. Equity Group was the lone bright spot, attracting inflows. This bearish stance reflects global risk-off sentiment and highlights how quickly international investors can swing Kenyan markets.

On individual counters, KCB Group dominated turnover at 27.7%, its price rising 0.9% to KES 54.25 on strong local buying. Absa Gold ETF advanced 1.4% to KES 4,490.00, while Equity Group edged up 0.5% to KES 54.25. These moves confirm financial counters remain attractive amid volatility.

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Limuru Tea surged 10% to KES 374.75, cementing its place as the day’s top gainer, driven by speculative interest in thinly traded stocks. In contrast, Home Afrika plunged 9.8% to KES 1.01, cementing its position as the day’s biggest loser. Umeme also shed 8.6% to KES 7.62, hitting lows last seen in January 2023.

Market stability was reflected in EABL (KES 211.75), Safaricom (KES 28.70), and DTB (KES 104.74), all of which closed unchanged. Their flat performance underscores their defensive character, with investors holding steady despite foreign-driven outflows in other segments.

Overall, the session was a cautionary tale: foreign exits clipped turnover, local investors filled the gap, and select financial counters outperformed while smaller caps suffered. The story is clear—Kenya’s equity market remains resilient but exposed to the whims of global sentiment.

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