Global markets closed the week on a strong note, lifted by softer-than-expected U.S. inflation data that reinforced expectations of a Federal Reserve rate cut. The Dow Jones, NASDAQ, and S&P 500 each recorded gains of over 2%, while Japan’s Nikkei 225 surged 3.6% following political developments that signaled continued fiscal support.
Locally, the Nairobi Securities Exchange maintained its bullish momentum, with the NASI rising 1.9% to 179.81 points and market capitalization increasing to KES 2.83 trillion. Trading activity spiked by 176%, supported by strong domestic investor participation at 55.8%. Olympia Capital led the gainers with a 21.8% jump, while Kapchorua Tea fell 26.8% to top the losers list. KenGen’s shares were briefly suspended after an unauthorized financial release, though optimism around its official results remains high.
In the fixed-income market, Treasury bill performance improved, with the 91-day paper yield easing to 7.83% amid high subscription levels. The secondary bond market turnover increased by 80%, and Eurobond yields declined following Kenya’s partial buyback of its 2028 issue, signaling improving investor confidence.
On the fiscal front, Kenya’s revenue collection grew by 32.8% year-on-year in September to KES 1.03 trillion, marking the strongest performance in five years. The surge was driven primarily by domestic borrowing, underscoring the government’s reliance on local markets to meet financing needs.
Looking ahead, investor focus shifts to the upcoming U.S. Federal Reserve meeting and the release of corporate earnings from key Nairobi-listed companies, including Safaricom and major banks, which are expected to shape near-term market sentiment.
Weekly Rock Pulse 24th October 2025
