Market Ends Month Steady as Foreign Outflows Persist
Overview
The Nairobi Securities Exchange (NSE) closed the month of September on a muted note, with the Nairobi All Share Index (NASI) posting a marginal gain of 0.03% to 176.74 points. Despite the stability in index levels, market sentiment remained fragile, weighed down by persistent foreign outflows and constrained liquidity. The total market capitalization stood at KES 2.78 trillion, reflecting minimal movement from the previous session.
Equities Performance
Equity turnover rose sharply by 253.7% to KES 535.80 million, driven primarily by renewed activity on large-cap counters. Safaricom led trading, accounting for nearly 60% of total market turnover, though its price slipped by 0.3% to close at KES 28.90. Other notable movers included KenGen, KCB Group, and Kenya Power, with modest price movements across the board. On the gainers’ side, Kapchorua Tea and Express Kenya surged by 9.4%, while Home Afrika and Sameer Africa featured among the day’s top decliners.
Fixed Income and Global Context
The fixed-income segment saw a 15.0% decline in bond turnover to KES 11.88 billion, signaling moderate investor participation. The FXD segment remained the most active, contributing over two-thirds of total trades. On the global front, U.S. markets extended gains following PCE data that aligned with forecasts, boosting expectations for additional Federal Reserve rate cuts in the final quarter of the year. However, renewed weakness in oil prices — driven by expectations of an OPEC+ production increase — reinforced a cautious outlook across emerging markets.
Market Outlook
With subdued foreign investor participation and limited macro catalysts, the NSE is likely to experience sideways trading in the near term. Local investors are expected to dominate activity, favoring high-dividend and value counters as they position for Q4 earnings season.
