Market Insights – August 26, 2025: Equities Rise as Safaricom, Power Stocks Take Center Stage
The Nairobi Securities Exchange (NSE) extended its bullish streak on Monday, August 26th, 2025, with all major indices posting modest gains. The Nairobi All Share Index (NASI) edged up by 0.5% to close at 170.92 points—supported by increased investor confidence and robust trading in key counters.
Strong Turnover Pushes Market Capitalization Higher
The total market capitalization climbed to KES 2.71 trillion, mirroring the broader market uptrend. Equity turnover surged by 35.2% to cross the KES 1 billion mark, closing at KES 1.12 billion. This spike came on the back of heavy activity in blue-chip stocks, particularly Safaricom, which accounted for 40.3% of the day’s total equity turnover.
Safaricom Leads Activity, But Power Stocks Shine
While Safaricom maintained its dominance with KES 451.61 million worth of shares traded, Kenya Power & Lighting Co. (KPLC) stole the spotlight on the gainers’ board with a 9.8% jump. Other standout performers included Eaagads Ltd, Olympia Capital, and East African Cables, showcasing strong investor appetite across industrial and energy sectors.
On the flip side, Eveready East Africa suffered a 10.0% drop, continuing its volatile trajectory. Other decliners included HF Group, KenGen, and Sanlam Kenya.
Derivatives and Bonds Signal Diverging Sentiment
In the derivatives market, trading remained light, with six contracts on Safaricom exchanged at a value of KES 209,800. The bonds market witnessed a contraction in activity, with turnover dropping by 43.3% to KES 2.58 billion. Despite the decline, infrastructure bonds like IFB1/2023/6Yr and IFB1/2022/14Yr continued to attract attention.
Foreign Activity Dips Slightly
Foreign investor participation softened to 47.7%, down from 50.4% in the previous session. Net foreign outflows totaled KES 50.58 million, indicating some profit-taking amid the bullish run.
Outlook
With corporate earnings season in full swing and dividend announcements from heavyweights like KCB and Safaricom expected soon, investor focus will remain on fundamentals. As the market inches closer to key resistance levels, momentum appears firmly in favor of the bulls—though foreign flows and global cues could add volatility in the days ahead.
Disclaimer: This report is for informational purposes only and should not be construed as investment advice. Please consult a licensed financial advisor for personalized guidance.
