Weekly Rock Pulse Report – Week Ending August 11th, 2025

Global Resilience and Local Challenges Shape Nairobi Market Outlook – Weekly Rock Pulse, August 2025

Global markets showed remarkable resilience during the week ending August 11th, 2025, shrugging off the latest U.S. tariffs that took effect on August 7th. The technology sector, led by Apple’s exemption from tariffs and significant domestic investment plans, fueled gains across major U.S. indices with NASDAQ surging nearly 4% and the S&P 500 advancing 2.4%. Investors remain cautious, however, as upcoming inflation data will be pivotal in shaping expectations for Federal Reserve interest rate decisions later this year.

Closer to home, the Nairobi Securities Exchange (NSE) maintained its bullish momentum, with the Nairobi All Share Index rising 1.4% to close at 161.19 points. Trading volumes dipped 28.3% compared to the prior week, but domestic investors drove much of the activity, contributing over 75% of market participation. Foreign investors, while still net buyers, pulled back with net inflows declining by over 30%.

Summary: Weekly Rock Pulse Report – Week Ending August 11th, 2025

• Global Market Overview:
  Despite the implementation of new U.S. tariffs on August 7th, global markets remained resilient with major indices posting weekly gains. The U.S. markets led the charge, with the NASDAQ rising 3.9%, S&P 500 up 2.4%, and Dow Jones advancing 1.3%. Tech sector strength, particularly from Apple (which received tariff exemptions and announced domestic investment plans), boosted sentiment.
  Investors are cautiously awaiting upcoming inflation data, which could influence expectations of a Federal Reserve rate cut in September. Bond yields across major economies edged slightly higher, showing market desensitization to tariff uncertainties.

• Nairobi Securities Exchange Performance:
  The NSE posted bullish momentum with the Nairobi All Share Index (NASI) increasing by 1.4% to 161.19 points.
  However, trading activity fell by 28.3% to KES 2.02 billion, down from KES 2.81 billion the prior week.
  Domestic investors were active, making up 75.8% of total market activity.
  Net foreign inflows declined 31.5% to KES 264.49 million.

• Top Gainers and Losers:

  • Gainers: Sameer Africa surged 32.7%, Olympia Capital Holdings gained 21.3%, Eaagads +11.6%, Williamson Tea +8.7%, Eveready East Africa +8.2%.

  • Losers: Standard Group fell 8.6%, Liberty Kenya declined 7.8%, Kakuzi -6.6%, Express Kenya -4.0%, TPS Eastern Africa -2.8%.

• Sectoral Performance:
  The Investment sector was the top performer, rising 4.8% weekly.
  Energy and Petroleum sectors lagged with marginal gains of 0.6%.
  Notably, Stanbic Bank announced a 106% increase in its interim dividend, boosting banking sector sentiment ahead of upcoming half-year results.

• Fixed Income Market:
  Discount securities underperformed with a 97.6% acceptance rate, down from 67.1% previously.
  Investors showed preference for the 364-day Treasury bills, bidding KES 12 billion.
  Spot rates declined modestly, indicating expectations of an interest rate cut in the near term.
  Secondary bond market turnover dropped 33.8% but remains elevated year-to-date.

• Macroeconomic Update:
  The Stanbic Kenya PMI fell to 46.8 in July (from 48.6), marking the steepest contraction in private sector activity since July 2024.
  Declines were driven by lower new orders and output in manufacturing and services, influenced by rising prices and inflation at 4.1%.
  Political instability and policy inconsistency were cited as additional headwinds.

• Upcoming Events:
  The banking sector’s half-year earnings season is underway, with more results expected soon.
  EPRA fuel price announcements are expected, with fuel prices likely to stay high due to new oil margins.
  The US July CPI inflation data release will be closely watched for signals on potential Federal Reserve rate cuts.

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