Global Markets Rebound Amid Policy Clarity
Global equity markets staged a strong recovery this week, rebounding from prior volatility driven by geopolitical tensions and AI disruption concerns.
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U.S. Markets:
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Nasdaq Composite: +1.5%
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S&P 500: +1.0%
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Dow Jones: +0.3%
Gains were supported by improved sentiment following a U.S. Supreme Court ruling on global tariffs and renewed confidence in economic resilience.
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Europe: STOXX Europe 600 gained over 2%, with the FTSE 100 and DAX closing higher on strong earnings and industrial momentum.
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Asia: Mixed performance, with Japan’s Nikkei easing slightly while Chinese markets recorded thin trading during Lunar New Year holidays.
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Global Fixed Income:
U.S. yields edged higher (10-year at ~4.09%) amid shifting rate expectations, while European and Japanese yields softened modestly.
Kenya Equity Market Overview
The Nairobi Securities Exchange experienced a sharp correction, marking its first full-week decline since March 2025.
Market Performance
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NASI: 209.88 (-3.1% W/W)
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Market Cap: KES 3.31 Trillion (-3.1%)
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Equity Turnover: KES 5.81 Billion (-21.0%)
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Net Foreign Outflows: KES 855.40 Million
Investor wealth declined by approximately KES 107.47 Billion, reflecting profit-taking after extended gains and shifting liquidity toward bonds following the CBK rate cut.
Sector & Stock Movers
Top Gainers
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Uchumi Supermarkets (+37.3%)
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Shri Krishana Overseas (+32.9%)
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Eaagads Ltd (+19.0%)
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CIC Insurance Group (+12.3%)
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Flame Tree Group (+12.2%)
Top Decliners
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Eveready East Africa (-19.2%)
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Sasini Plc (-12.4%)
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Nation Media Group (-6.7%)
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Express Kenya (-6.5%)
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Kenya Airways (-5.8%)
Insurance stocks showed relative resilience, while telecommunications and select large caps saw notable profit-taking.
Weekly Top Movers by Turnover
Stanbic Holdings led trading activity with KES 1.35 Billion in turnover and strong foreign participation (85.9%), closing up 5.6%.
Major banking counters, Safaricom, and East African Breweries also featured prominently in weekly activity.
Fixed Income Market Update
Treasury Bills
Investor appetite remained strong:
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91-Day: 7.59% (▼ 1.95bps)
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182-Day: 7.75% (▼ 2.01bps)
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364-Day: 8.90% (▼ 7.45bps)
Bond turnover in the secondary market surged 58.0% to KES 113.4 Billion, reflecting heightened demand amid expectations of further monetary easing.
Eurobond Market
Eurobond yields edged up slightly (≈4bps) following recent rallies supported by Moody’s upgrade and improved macro sentiment.
Macroeconomic Spotlight
Kenya’s $500M Eurobond Buyback & $2.25B New Issuance
In a proactive debt management move:
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Kenya launched a $500M Eurobond buyback targeting 2028 and 2032 maturities.
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Issued $2.25B dual-tranche Eurobond (2034 & 2039 amortizing notes).
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The issuance was oversubscribed, signaling renewed investor confidence.
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The move smooths Kenya’s external debt maturity profile and reduces refinancing risk.
This aligns with broader African sovereign refinancing trends amid improving global market conditions.
Outlook
Market direction will hinge on:
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Upcoming full-year earnings announcements
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Dividend declarations
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Bond yield movements
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Foreign investor flows
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Liquidity conditions post-rate cut
While equities corrected sharply this week, strong bond demand and improved external financing conditions suggest underlying macro stabilization.
Read more: Weekly Rock Pulse – 20th February 2026
