Global equity markets posted strong gains in October, supported by easing U.S.–China trade tensions and robust corporate earnings. Japan led the rally with a 16.6% surge, driven by renewed investor optimism following policy changes under Prime Minister Sanae Takaichi.
Across Africa, markets maintained positive momentum, with Malawi (+257.6% YTD) leading regional performance, followed by Ghana (+71.2%), Kenya (+54.2%), and Nigeria (+49.4%). Investor confidence was buoyed by improving macroeconomic stability, easing default risks, and stronger commodity prices.
In Kenya, the Purchasing Managers’ Index (PMI) rose to 52.5 in October, indicating sustained business expansion supported by steady inflation at 4.6% and stable fuel prices. The NSE All Share Index advanced 6.5% month-on-month (61.1% year-to-date), underlining continued investor optimism.
The banking sector remained a key driver of market activity, led by Equity Group’s 32.2% year-on-year profit growth and speculation around a potential NCBA–Stanbic Bank merger, which could create Kenya’s third-largest bank by assets. Meanwhile, Family Bank announced plans to list on the NSE’s Main Investment Market Segment, signaling growing investor confidence in the sector.
In the energy sector, KenGen reported a 54.2% rise in profit after tax, while Kenya Power’s earnings declined due to tariff adjustments. Parliament’s approval for the partial privatization of Kenya Pipeline Company (KPC) marked a milestone in the country’s ongoing energy reforms.
On the fixed income front, the Government reopened two long-term bonds, raising KES 85.3 billion amid strong investor demand. The yield curve displayed a bear-steepening pattern, reflecting investor preference for longer-dated securities as rate cuts continue.
As valuations begin to align with fundamentals, investors are encouraged to adopt a selective approach focusing on high-quality, dividend-paying counters amid a stable macroeconomic and policy environment.
Rock Advisors_Rockview Monthly – November 2025
