Global markets closed the week on a mixed note despite the U.S. Federal Reserve implementing a 25bps rate cut, a move that was largely priced in by investors. Market sentiment remained cautious as investors continued rotating away from highly valued AI-linked stocks toward more cyclical and value-driven sectors, including financials, healthcare, and industrials. European equities outperformed global peers, with Germany’s DAX gaining 3.3%, supported by expectations of potential policy easing by the European Central Bank.
Locally, the Nairobi Securities Exchange (NSE) recorded a bearish performance. The Nairobi All-Share Index (NASI) declined 1.1% week-on-week to close at 177.66 points, while market capitalization fell 1.6% to KES 2.79 trillion. Despite the decline in indices, trading activity surged by 59.0% to KES 4.16 billion, driven largely by increased domestic participation, which accounted for 67.5% of total market activity.
Foreign investor sentiment improved notably, with net foreign inflows of KES 346.6 million, reversing the net outflows recorded in the prior week. Jubilee Holdings Ltd emerged as the top gainer, rising 7.0%, while E.A. Portland Cement led the laggards with a 9.3% decline, largely attributed to profit-taking following recent takeover-driven speculation.
On the fixed income front, Treasury bill yields softened following the Central Bank of Kenya’s policy rate cut, with downward pressure observed across the yield curve. Secondary bond market activity eased by 9.4% to KES 54.8 billion, while Eurobond yields edged higher in the short term, though are expected to trend lower over time amid global monetary easing.
Fuel prices remained unchanged in the latest review, supported by government stabilization mechanisms despite rising landing costs for diesel and kerosene. With global oil prices subdued and the local currency stable, inflationary pressures are expected to remain contained in the near term.
Read more Weekly Rock Pulse 12th December 2025
