Global markets turned cautious this week as escalating geopolitical tensions in the Middle East disrupted oil supply routes and triggered a sharp surge in crude prices. The resulting energy shock reignited inflation concerns and pushed global bond yields higher, prompting investors to reassess expectations for interest rate cuts. Major global equity indices ended the week lower amid rising uncertainty.
In contrast, the Nairobi Securities Exchange posted a positive week, supported by improved trading activity and strong domestic investor participation. The Nairobi All Share Index (NASI) rose 1.4%, while market capitalization expanded 6.5% to KES 3.5 trillion. Equity turnover increased 15.2% week-on-week, reflecting stronger liquidity and positioning around key corporate developments.
Market sentiment was further supported by the successful listing of Kenya Pipeline Company, whose IPO raised KES 106.3 billion and was oversubscribed by 105.7%, marking one of the most significant capital market transactions in recent years. Meanwhile, Nation Media Group surged 22.3% following the acquisition of a controlling stake by Tanzanian investor Rostam Azizi, signaling renewed optimism around the company’s strategic direction.
In fixed income markets, demand for Treasury bills remained robust, reflecting strong liquidity conditions, while global bond markets continued to adjust to inflation risks stemming from higher energy prices.
On the macroeconomic front, fuel prices remained unchanged for the March–April review period, even as landed fuel costs rose. However, sustained global energy volatility suggests upward pressure on domestic pump prices may emerge in the coming months.
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