Weekly Rock Pulse | Market Update
Week Ending 27 February 2026
Global Markets
Global equities closed lower during the week as stronger U.S. inflation data reduced expectations of near-term rate cuts, while geopolitical tensions supported oil prices and increased investor caution. Technology stocks underperformed as markets reassessed the sustainability and timing of AI-driven investment returns, while bond yields declined modestly amid increased demand for safer assets.
Key developments:
- Persistent inflation tempered expectations of policy easing.
- AI-linked equities saw valuation reassessment.
- Defensive positioning increased across global markets.
Kenya Equities
The Nairobi Securities Exchange recorded a positive week, with the Nairobi All Share Index rising 3.0%, supported by improved turnover and strong domestic investor participation. Activity reflected early positioning ahead of earnings announcements.
Market drivers:
- Increased domestic investor participation.
- Accumulation in banking counters ahead of results.
- Manufacturing stocks supported by earnings recovery.
Market Movers
Uchumi Supermarket emerged as the top mover of the week, gaining 59.2%, driven primarily by speculative positioning following renewed profitability expectations and ongoing turnaround sentiment.
Broader market signals:
- Gains concentrated in earnings-supported counters.
- Dividend positioning influenced bank stock demand.
- Declines linked to earnings pressure and weaker consumer demand.
- Investor focus increasingly shifting toward earnings quality.
Fixed Income
Treasury bill auctions remained oversubscribed, indicating sustained liquidity following recent monetary easing, while Eurobond yields declined as refinancing risks improved.
Fixed income highlights:
- Strong demand for government securities.
- Yields eased across most tenors.
- Secondary bond market activity increased.
Macroeconomic Update
Headline inflation eased slightly to 4.3% year-on-year, remaining within the Central Bank of Kenya’s target range.
Inflation dynamics:
- Lower transport and housing costs supported disinflation.
- Food prices remained the primary pressure point.
- Near-term inflation outlook remains stable.
Market Focus
Investors continue to monitor:
- Corporate earnings releases
- Inflation trajectory
- Liquidity conditions
- Global oil price development
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