Banking Stocks Lift NSE Indices As Weekly Turnover Hits $30.7 Million

The Nairobi Securities Exchange (NSE) closed the week on a positive note, with all major benchmark indices posting gains as investor activity surged, even as foreign investors remained net sellers.

According to the latest Kenya Weekly Market Wrap by Standard Investment Bank (SIB), the NSE All Share Index (NASI) rose 0.8 percent during the week ended July 27, while the NSE 10, NSE 20 and NSE 25 indices gained 1.2 percent, 1.0 percent and 0.9 percent, respectively.

Market turnover jumped 65 percent week-on-week to USD 30.7 million, driven largely by strong trading in Safaricom, which accounted for 25.6 percent of the week’s total turnover. The telecommunications giant’s share price edged up 0.3 percent to KES 35.60.

Banking stocks also supported the market’s upward momentum. Diamond Trust Bank climbed 3.1 percent to KES 150.75, KCB Group gained 2.2 percent to KES 82.50, NCBA advanced 1.1 percent to KES 89.75, while Equity Group rose 0.6 percent to KES 87.00.

Unga Group emerged as the week’s best-performing stock after rallying 22 percent to KES 34.05, while Home Afrika was the biggest loser, shedding 10.3 percent to close at KES 1.05.

Despite the positive market performance, foreign investors recorded net outflows of USD 7.4 million during the week. The Nairobi Securities Exchange attracted the highest foreign buying interest, while Safaricom experienced the largest foreign selling pressure. Foreign participation in the market increased significantly to 36.2 percent from 19.1 percent recorded in the previous week.

Investors are now expected to shift their focus to Kenya’s July inflation data, scheduled for release on July 31, which could provide fresh direction for the equities market.

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