Muted Trading, Resilient Sentiment: A Cautious Start to September at the NSE
The Nairobi Securities Exchange (NSE) opened September 2025 on a measured note, with the market showing resilience despite a significant drop in equity turnover. The Nairobi All Share Index (NASI) ticked up marginally by 0.1% to close at 171.67, driven by a handful of gainers across key sectors.
Market Cap Inches Up Despite Turnover Slump
The broader market held firm, adding KES 1.75 billion in capitalization to close at KES 2.72 trillion. However, investor activity was notably subdued, with equity turnover halving to KES 467.66 million, and trading volumes falling by 45.4% to 20.86 million shares. The number of deals stood at 1,226, reflecting a generally cautious market sentiment.
Safaricom Steadies the Market
As is often the case, Safaricom anchored the day’s activity with KES 130.76 million in turnover. Other top movers included Equity Group, KCB, and EABL, although trade volumes were significantly lower than average.
Winners Lead with Quiet Optimism
Despite the decline in trading activity, select counters posted strong gains. Eveready East Africa and Kapchorua Tea gained over 9%, buoyed by renewed interest from retail investors and speculators. Flame Tree Group, Olympia Capital, and Eaagads Ltd also posted solid single-digit gains.
Bears Pressure Select Financials
The day’s decliners were led by HF Group, which dropped 5.9%, followed by Liberty Kenya, Britam, and Sanlam Kenya. The downward trend in insurance stocks signals sustained caution in the financial services sector amid earnings season.
Foreign Investors Pull Back
Foreign participation fell to 41.0%, with net outflows totaling KES 32.93 million. This suggests a wait-and-see approach from global investors, likely in response to global macroeconomic cues and upcoming local data releases.
Bond Market Sees Uptick
Contrasting the sluggish equities market, bond turnover jumped by 43.4% to KES 2.33 billion. The most traded instruments were the IFB1/2023/6Yr, IFB1/2022/14Yr, and FXD1/2020/5Yr, indicating steady appetite for longer-dated government securities.
Market Outlook: Watchful but Optimistic
With September underway, the NSE appears poised for cautious optimism. Corporate earnings, dividend declarations, and macroeconomic indicators—both domestic and global—will be key in driving investor sentiment in the coming weeks.
While trading volumes were low, the market’s ability to stay in green territory highlights underlying confidence, particularly in key counters like Safaricom and select agribusiness stocks. All eyes now turn to upcoming monetary policy cues and earnings reports to gauge direction for the remainder of Q3.
