This week’s Rock Pulse report highlights a mixed global and local market environment shaped by inflation data, labour trends, and shifting investor sentiment.
Globally, markets posted modest gains as softer U.S. Core PCE inflation (2.8%) and weak labour data strengthened expectations of a December Federal Reserve rate cut now priced at an 87% probability. Most major global indices ended the week in positive territory, supported by improved risk appetite, although long-term bond yields edged higher on persistent inflation risks.
Locally, the Kenyan equities market registered a bearish week, with the Nairobi All Share Index (NASI) dipping 0.8% and market cap declining to KES 2.83 trillion. Trading activity fell by 17.3% as foreign participation dropped to 25%, signalling cautious offshore sentiment. Uchumi Supermarkets led the week’s gainers (+48.1%) following a return to profitability, while Car & General was the biggest loser.
Sector performance was mixed, with Commercial & Services outperforming (+5.3%) while Automobiles lagged. Safaricom saw slight gains after the government announced a premium-priced 15% stake sale to Vodafone South Africa executed privately to avoid market disruption.
In fixed income, strong demand for short-term securities continued, especially the 364-day T-bill, while secondary bond turnover declined slightly. Eurobond yields eased on expectations of U.S. policy easing. Kenya’s PMI surged to 55.0, signalling the strongest private-sector expansion since 2020, supported by rising orders, improved hiring, and steady margins.
As markets head into a crucial week with both the Central Bank of Kenya (Dec 9) and U.S. Federal Reserve (Dec 10) meetings, investors will be watching closely for potential rate cuts that could shift near-term market sentiment.
Download the full Weekly Rock Pulse report for complete data, sector analysis, and market insights. Weekly Rock Pulse 5th December 2025
