Market Summary
The Nairobi Securities Exchange (NSE) closed the session bearish, with most key indices declining amid foreign investor sell-offs. Despite the subdued sentiment, market activity strengthened, supported by a sharp rise in equity turnover and strong trading in select banking and blue-chip counters.
Foreign participation tilted negative, reversing the previous session’s inflows, while local investors remained active. The banking sector continued to anchor market liquidity, led by KCB Group and Safaricom.
Key Market Highlights
Equities Market
Nairobi All Share Index (NASI) declined by 0.3% to close at 195.05
NSE-10, NSE-25, and Banking Index all posted losses, while NSE-20 edged up 0.2%
Equity turnover surged 50.1% to KES 886.21 Mn, indicating heightened trading interest despite weak sentiment
Foreign investors recorded net outflows of KES 47.48 Mn, reversing prior inflows of KES 508.33 Mn
KCB Group dominated trading activity, accounting for 33.3% of total market turnover
Top Gainers
Britam Holdings (+9.1%)
ABSA New Gold ETF (+5.3%)
Crown Paints (+5.0%)
Diamond Trust Bank (+4.1%)
B.O.C Kenya (+2.6%)
Top Losers
Kenya Airways (-9.8%)
Uchumi Supermarkets (-4.7%)
WPP Scangroup (-4.2%)
Express Kenya (-4.1%)
Liberty Kenya Holdings (-2.7%)
Fixed Income Market
Bond turnover jumped 79.2% to KES 18.86 Bn
The FXD segment dominated trading, accounting for 81.9% of large-value trades
91-day T-bill rate edged up to 7.73%, while 182-day and 364-day rates remained largely stable
Increased activity suggests renewed institutional positioning in government securities
Global Market Overview
Global markets traded mixed and largely sideways
The U.S. Federal Reserve held interest rates steady, reinforcing cautious investor sentiment
Gold rallied to record highs, driven by safe-haven demand
Oil prices strengthened, supported by geopolitical tensions, supply disruptions, and a weaker U.S. dollar
Currency & FX
The Kenya Shilling remained stable against the US Dollar
Mild appreciation recorded against the Euro, Sterling Pound, South African Rand, and regional currencies
FX stability continues to provide short-term macro support for domestic markets
Derivatives Market
Trading volumes and contract values declined sharply
Open interest increased, suggesting positioning for future market movements rather than active trading
Overall Market Takeaway
Market sentiment remained cautious, weighed down by foreign outflows and global uncertainty. However, strong turnover, resilient banking stocks, and active fixed income trading point to underlying investor engagement rather than broad-based risk aversion. Short-term volatility is likely to persist, with attention shifting to corporate actions, earnings, and global monetary signals.
Read More: 29th January 2026- Market Rockers Report
