This past week, global financial markets grappled with the looming impact of newly announced U.S. trade tariffs set to take effect on August 7th. The tariffs, targeting countries based on their trade balance with the U.S., have injected uncertainty and exerted downward pressure on major equity markets worldwide. The U.S. Dow Jones, NASDAQ, and S&P 500 all recorded significant declines, while Asian and European markets were not spared. Despite this, some tech giants defied the broader downtrend by posting strong earnings, offering a glimmer of resilience amid market volatility.
Closer to home, the Nairobi Securities Exchange (NSE) saw a 1.0% dip in its All-Share Index, closing the week at 158.95. Notably, trading activity rose 7.6% to over KES 2.8 billion, fueled predominantly by local investor activity. Foreign participation, however, waned to under 18%, reflecting cautious sentiment amid global uncertainties. Among standout performers was Sameer Africa, which rallied nearly 48% following its strategic pivot towards a more profitable real estate business and away from its loss-making tyre segment. Meanwhile, Williamson Tea’s share price slipped 8.5% post book closure.
Summary of Weekly Rock Pulse – August 4th, 2025
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Global Market Overview:
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Tariff concerns dominated global markets after the U.S. announced new trade tariffs effective August 7th, imposing 10% or 15% tariffs based on trade surplus/deficit status with the U.S.
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Major global indices declined with the U.S. markets seeing significant drops (Dow Jones -2.9%, NASDAQ -2.2%, S&P 500 -2.4%). Asian and European markets also posted losses.
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Despite bearish sentiment, tech giants Meta and Google reported better-than-expected earnings.
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Yields on 10-year government bonds declined globally, reflecting expectations of a U.S. Federal Reserve rate cut later in the year.
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Nairobi Securities Exchange Performance:
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The Nairobi All-Share Index (NASI) fell 1.0% to 158.95.
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Trading activity increased by 7.6% to KES 2.81 billion, with domestic investors dominating at 82.4% participation.
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Foreign investor participation declined to 17.6%.
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Notable stock performances:
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Sameer Africa surged 47.6%, attributed to its strategic shift away from a loss-making tyre division to real estate.
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Williamson Tea declined 8.5% following book closure.
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Commercial and Services sector led gains with a 4.8% weekly increase, while Automobiles & Accessories fell 4.4%.
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Fixed Income Market:
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Discount securities underperformed, with a 67% performance rate compared to 167% previously.
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Treasury bill acceptance rates remained strong, particularly for the 91-day and 364-day papers, reflecting investor preference for longer-term yields.
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Secondary bond market turnover rose 36.4% to KES 59.18 billion, boosted by a 25-basis point cut in the Central Bank Rate to 9.75%.
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Eurobond yields declined moderately, supported by Kenya’s Conflict of Interest Bill signing, expected to unlock significant World Bank funding.
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Macroeconomic Update:
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Kenya’s headline inflation rose slightly to 4.10% in July 2025, driven mainly by rising fuel prices.
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Core inflation edged up to 3.10%.
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Inflation is expected to rise toward 5% in the short term due to sustained high fuel costs, although global oil price pressures and favorable weather may contain further increases.
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Upcoming Corporate Actions & Events:
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Dividend payments and book closures scheduled for several companies including EABL, British American Tobacco, Safaricom, and Liberty Kenya.
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US earnings season underway with around 29 S&P 500 companies expected to report results.
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US tariffs enforcement starts August 7th.
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