Global markets retreated during the week as escalating geopolitical tensions between the United States and Iran pushed Brent crude prices above $80 per barrel, intensifying concerns around energy-driven inflation and delaying expectations of interest rate cuts. The risk-off sentiment weighed on major global indices, while investors rotated toward defensive sectors and safe-haven assets.

At the Nairobi Securities Exchange, the market mirrored the cautious global backdrop, with the Nairobi All Share Index (NASI) declining 3.5% week-on-week to close at 208.41 points. Trading activity moderated to KES 5.49 billion, reflecting softer market participation, although domestic investors remained the primary drivers of activity.

On the equities front, Africa Mega Group led weekly gains, advancing 10.7% following positive developments surrounding its digital agricultural commodities platform. In contrast, Uchumi Supermarkets recorded the sharpest decline, falling 38.6% amid continued concerns around fundamentals and thin trading volumes.

In fixed income markets, demand for government securities remained strong, with Treasury bill auctions significantly oversubscribed, signaling ample market liquidity and sustained investor appetite for short-term instruments. Meanwhile, Kenya’s Purchasing Managers’ Index (PMI) moderated to 50.4 in February, indicating slower but still marginal expansion in private sector activity.

Looking ahead, market participants will closely monitor upcoming bank earnings releases, inflation data, and fuel price adjustments, which are expected to provide further signals on the direction of domestic markets and broader economic activity.

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