Market Rockers Report – 27th September 2025
Equity Market Weakness Persists as Trading Volumes Contract Sharply
Overview
The Nairobi Securities Exchange (NSE) closed the week on a bearish note, with the Nairobi All Share Index (NASI) declining by 0.7% to 176.68 points. Weak investor sentiment continued to weigh on activity, resulting in a 66.7% decline in turnover to KES 151.47 million. Foreign investors remained net sellers, registering outflows of KES 5.54 million, as cautious positioning ahead of global inflation data dampened appetite for risk assets.
Equities Performance
Trading activity was predominantly domestic, with local participation at 92.7%, underscoring a retreat by offshore investors. The market breadth tilted negative as decliners outnumbered gainers. East African Breweries, Kenya Power, and Co-operative Bank dominated turnover, while Uchumi Supermarkets, Car & General, and Home Afrika led the gainers list, posting gains of up to 8.8%. Conversely, Express Kenya and Nation Media Group were the day’s major laggards, shedding 7.4% and 5.1% respectively.
Fixed Income and Macro Environment
The bond market mirrored equity weakness, recording a 4.3% contraction in turnover to KES 13.97 billion. Activity remained concentrated in the FXD segment, which accounted for 70.4% of total trades. The IFB1/2022/19Yr issue remained the most liquid paper in the session. Globally, U.S. markets regained footing after the PCE inflation data aligned with expectations, reinforcing the likelihood of further Fed rate cuts in Q4 2025.
Market Outlook
We expect the local equities market to remain range-bound in the near term, with limited foreign inflows and cautious institutional repositioning. Investors are likely to favor dividend-paying counters and defensive financials as global monetary policy uncertainty persists.
