Equities Market Posts Strong Start to October as Foreign Flows Turn Positive
Overview
The Nairobi Securities Exchange opened October on a positive note, buoyed by renewed investor optimism and a rebound in foreign inflows. The Nairobi All Share Index (NASI) rose 0.8% to close at 178.16, marking one of the stronger starts to a new quarter in recent months. Market capitalization climbed to KES 2.81 trillion, supported by gains in blue-chip counters, while trading activity moderated slightly, with turnover falling 9.9% to KES 482.97 million.
Equities Performance
The rally was largely driven by Safaricom, which accounted for nearly 38% of total market turnover, rising 1.4% to close at KES 29.30. KCB Group, Equity Group, and Kenya Power also contributed positively to index performance. On the gainers list, Williamson Tea Kenya and Umeme each advanced by 10%, alongside Olympia Capital and TPS Eastern Africa, signaling renewed interest in both agricultural and power-sector stocks. The day’s top laggards included Nation Media Group and BK Group, reflecting mild profit-taking.
Fixed Income and Global Context
The bond market posted subdued performance, with turnover declining by 31.3% to KES 8.16 billion. The FXD segment remained dominant, capturing nearly 79% of total trades, while IFB1/2023/17Yr was the most active paper. Globally, U.S. equities extended gains amid strong tech momentum, led by AI-related investments, while oil prices continued to weaken ahead of an expected OPEC+ production increase.
Market Outlook
We expect sentiment to remain cautiously optimistic as investors position ahead of Q3 earnings season. Select counters with strong balance sheets and attractive dividend policies are likely to drive near-term performance.
