Market Pulse – Strong Local Momentum as Global Eyes Stay on U.S. Fed and Nvidia
August 25th, 2025 – Weekly Financial Recap from Rock Advisors
As markets closed the week of August 25th, a wave of optimism swept through global and local financial markets alike. Global investors are eyeing U.S. Federal Reserve policy pivots while Kenya’s bourse showed strong bullish momentum backed by vibrant domestic investor participation.
Global Markets: Cautious Optimism Rises
Soft U.S. labor data and cooling inflation metrics have reinvigorated market hopes for a Fed rate cut in September. Fed Chair Jerome Powell’s nuanced speech at Jackson Hole hinted at flexibility—sending global markets into a late-week rally. The Shanghai Composite led global gains with a 3.5% jump, while Europe and the Dow closed green. U.S. bond yields also edged lower across the curve as investors priced in softer monetary policy expectations.
Nairobi Securities Exchange: Bullish and Buoyant
Back home, the Nairobi All-Share Index (NASI) rose 2.6%, closing at 170.03 points. Equity turnover climbed by nearly 30% week-on-week to KES 2.96 billion. Domestic investors carried the bulk of the action, commanding over 70% of market activity.
In terms of stock performance:
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Top Gainer: Eaagads Ltd (+50.7%)
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Top Loser: Eveready East Africa Ltd (-30.2%)
The investment services sector stole the spotlight with a 46.5% weekly gain, while the banking sector painted a mixed picture:
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Diamond Trust Bank posted a 9.7% rise in net earnings.
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Standard Chartered reported a 21.5% decline, though it maintained its KES 8.00 dividend.
Bonds & Bills: Softening Yields, Robust Turnover
T-bills saw increased demand, especially the 182-day paper, thanks to upcoming maturities. Spot rates continued to fall, driven by the CBK’s recent 25bps cut. Meanwhile, bond turnover more than doubled in the secondary market, primarily due to high activity around infrastructure bonds.
Macroeconomic View: Revenue Up but Targets Missed
July’s fiscal data shows total revenue rose 30.9% YoY to KES 245.6 billion. Domestic borrowing surged, reflecting the government’s push to pre-fund upcoming debt obligations. Still, collections fell short of targets, underlining the ongoing fiscal pressures.
Eyes on the Horizon
Next week will see a continuation of Kenya’s banking earnings season and the highly anticipated earnings release by global chip giant NVIDIA. Investors will also be watching dividend payouts from KCB, EABL, Safaricom, and others.
Disclaimer: This article is for informational purposes only and not intended as financial advice. Please consult your investment advisor.
For in-depth insights or advisory services, contact Rock Advisors at info@rockadvisors.org
