Indices Decline Slightly as Investors Lock in Early Gains
Overview
The NSE closed Friday’s session slightly lower, snapping a two-day winning streak as profit-taking set in across select large-cap counters. The NASI eased 0.3% to 178.50, while market capitalization edged down to KES 2.81 trillion. Turnover improved to KES 483.55 million, up 9.0% from the previous session, as foreign investors maintained a net inflow position of KES 29.27 million, albeit lower than earlier in the week.
Equities Performance
The day’s activity was dominated by KCB Group, which accounted for 20.5% of total turnover, maintaining its price at KES 57.00. KenGen Plc and Olympia Capital led the gainers, rising 9.6% and 9.3%, respectively, while Car & General advanced 8.6%. On the downside, Unga Group fell 4.2%, followed by Sameer Africa (-2.9%) and Crown Paints (-1.6%). The participation mix showed foreign investors at 23%, reflecting cautious optimism amid subdued liquidity.
Fixed Income and Global Context
Bond turnover fell sharply by 47.6% to KES 2.86 billion, signaling week-end fatigue and limited institutional trading. The FXD segment remained dominant, with IFB1/2022/19Yr again emerging as the most traded paper. Internationally, U.S. equities extended gains, with the S&P 500 closing at another all-time high despite concerns over a prolonged government shutdown. Oil markets remained under pressure on speculation that OPEC+ would sanction an additional output increase.
Market Outlook
We anticipate a consolidative start to the new week as investors assess foreign flow trends and macro data. Defensive counters in banking and energy remain preferred holdings amid muted risk sentiment.
