Overview
The NSE extended its bullish momentum into the second trading day of October, with the NASI gaining 0.4% to close at 178.96. Gains were recorded across all key indices, including the NSE-10 (+0.5%) and NSE-25 (+0.5%), reflecting broad-based investor confidence. However, equity turnover declined 8.1% to KES 443.61 million, signaling selective trading ahead of key macroeconomic data releases.
Equities Performance
Market activity was led by Safaricom, which dominated trading with 49.3% of total market turnover, rising 0.2% to KES 29.35. Other top movers included Kenya Power (+2.4%), KCB Group (+0.9%), and KenGen (+5.3%). Longhorn Publishers led the gainers, rising 8.9%, followed by Williamson Tea Kenya and Crown Paints, both benefiting from renewed investor rotation into industrials and agricultural equities. The biggest decliners included Uchumi Supermarkets (-4.9%) and Flame Tree Group (-3.6%).
Fixed Income and Global Context
Bond turnover fell 32.9% to KES 5.47 billion, with most activity centered on the FXD segment (77.6%). The IFB1/2022/19Yr issue continued to attract institutional investors seeking longer-duration exposure. On the global front, U.S. equity markets advanced as soft employment data raised expectations for additional Federal Reserve rate cuts, while oil prices extended losses amid growing concerns of oversupply ahead of the upcoming OPEC+ meeting.
Market Outlook
We anticipate continued investor caution, with market momentum anchored on dividend yield counters and defensive banking stocks. Lower interest rates and stable macro indicators should support mild equity re-rating through Q4 2025.
