NSE Turnover Jumps 40% as Safaricom Leads Trading and Co-op Bank Skyrockets After Strong 3Q25 Results

The Nairobi Securities Exchange closed today’s session in a delicate balance of gains and losses, reflecting a market that is active, emotional, and increasingly sensitive to earnings momentum, foreign flows, and dividend declarations. The broader market posted a slight lift through the NASI, which edged up by 0.1 percent, signaling a mild uptick in overall market capitalization. At the same time, the N10, NSE 20, and NSE 25 indices collectively softened, slipping by between 0.1 and 0.3 percent, a reminder that while optimism is present, caution still dominates investor positioning. This mixed close underscores the competing forces at play—local investors driving volume, corporates releasing earnings, and foreign investors persistently rebalancing away from frontier markets.

Liquidity surged strongly across the session, with turnover expanding by 40.5 percent to hit USD 6.6 million. This marked one of the most active sessions of the month. Local investors once again anchored trading, commanding 75.9 percent of all activity despite easing from yesterday’s dominance of over 89 percent. Their participation continues to provide the stability the market needs, especially at a time when global investors maintain a conservative stance toward emerging and frontier markets. The robust turnover also reflects renewed interest in large-cap counters, particularly among retail and domestic institutional players who continue to find value opportunities in banking and telecommunications stocks.

Safaricom remained the heartbeat of the market, driving more than a third of the day’s total turnover. The counter gained 0.9 percent to close at KES 29.00, maintaining its role as the NSE’s liquidity king even as foreign investors extended their selling streak for the third consecutive session. Safaricom’s ability to attract local buying interest despite persistent foreign exits illustrates how deeply entrenched the stock is in domestic portfolios. The day also saw notable activity among tier-one banks, where reactions to earnings releases played out sharply on the boards. KCB Group shed 1.1 percent to KES 65.00, while Equity Group slipped 0.8 percent to KES 64.50, as both counters navigated a blend of foreign profit-taking and subdued demand. Co-op Bank, however, broke away from the banking pack, rallying an impressive 9.5 percent to KES 24.90. This surge came on the strength of its newly released 3Q25 results and its historic declaration of a maiden interim dividend of KES 1.00. Co-op Bank’s rally was a clear signal that the market rewarded resilience, balance sheet strength, and shareholder returns.

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The performance in the consumer and manufacturing counters painted a similarly nuanced picture. EABL eased by 2.1 percent to settle at KES 235.00, extending its recent bearish run as regional inflation, excise taxes, and muted consumption patterns continue to challenge its margins. Meanwhile, BAT held its ground at KES 450.00, reflecting stability in the face of regulatory headwinds and low trading volumes. Among the small-cap battlegrounds, Uchumi emerged as the day’s top gainer, jumping 10 percent to KES 0.44, fuelled largely by speculative positioning from opportunistic traders. ABSA Bank Kenya, on the other hand, suffered a heavy blow, sliding 6.4 percent to KES 24.20 as the market reacted negatively to shifting sentiment and possible portfolio switches among investors seeking stronger dividend plays.

Foreign investors once again ended the day as net sellers, registering outflows of USD 850.7K. Safaricom led the sell-side activity for the third day in a row, underscoring foreign investors’ strategic profit-taking and offloading of high-weight positions. Interestingly, KCB Group attracted the highest foreign buy interest, signaling that while foreign participation is shrinking, selective confidence persists in high-value banking counters. These outflows continue to pressure market depth, but the strength of local investors has blunted the potential downside.

Co-operative Bank’s 3Q25 results were the day’s most significant corporate highlight. The lender reported a 12.3 percent year-on-year increase in earnings per share to KES 3.68, with attributable income rising to KES 21.6 billion. Pre-tax profit climbed 12.1 percent to KES 30.0 billion, driven largely by a robust 22.8 percent expansion in net interest income to KES 45.3 billion. Despite this strength, non-interest revenue dipped slightly by 0.8 percent due to weaker forex trading income. The Group grappled with rising credit impairments, with loan loss provisions surging 31.9 percent year-on-year as gross non-performing loans hit KES 78.9 billion, reflecting the broader macroeconomic pressures felt across households and SMEs. Its main subsidiary posted a 10.1 percent rise in profit after tax to KES 19.3 billion, demonstrating strong operational efficiency. The announcement of the Group’s first-ever interim dividend of KES 1.00 amplified investor excitement, with book closure scheduled for November 26, 2025.

Today’s trading session demonstrated a market alive with activity, competing sentiments, and pockets of strong conviction. The surge in turnover, dominance of local investors, and outsized movements in specific counters all point toward a market adjusting to the realities of higher interest rates, shifting risk appetites, and an evolving earnings landscape. As investors digest Co-op Bank’s results and anticipate more corporate announcements, the NSE seems poised for continued volatility—tempered by strong local participation and selective foreign interest.

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