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Kenya Equities Market Weekly Update – 7th March 2025
The Kenyan equities market continued its upward trajectory last week, with all major indices posting gains. Investor sentiment remained positive, driven by strong performances from key large-cap stocks. Below, we break down the key highlights and trends shaping the market.
1. Market Indices Performance
All major indices recorded gains during the week, reflecting a bullish trend in the equities market:
- NSE 20: Gained 1.6%, bringing its year-to-date (YTD) performance to 13.6%.
- NSE 25: Rose by 1.4%, with a YTD gain of 6.7%.
- NASI (NSE All Share Index): Increased by 1.2%, taking its YTD performance to 5.4%.
- NSE 10: Gained 0.9%, with a YTD increase of 3.9%.
The strong performance was driven by gains in large-cap stocks, particularly in the banking sector.
2. Top Gainers and Losers
Top Gainers:
- Stanbic Bank: +9.4%
- DTB Kenya: +3.2%
- NCBA Kenya: +3.0%
These stocks contributed significantly to the overall market gains, reflecting investor confidence in the banking sector.
Top Losers:
- BAT Kenya: -1.2%
- Equity Group: -0.4%
- KCB Bank: -0.4%
While these losses weighed on the market, they were offset by the strong performances of other large-cap stocks.
3. Equities Turnover and Foreign Investor Activity
- Turnover: Equities turnover increased by 40.3% to USD 19.1 mn, up from USD 13.7 mn the previous week. Year-to-date (YTD) turnover now stands at USD 159.1 mn.
- Foreign Investors: Foreign investors remained net sellers for the second consecutive week, with a net selling position of USD 4.7 mn (up from USD 2.0 mn the previous week). The YTD foreign net selling position now stands at USD 22.7 mn, compared to USD 16.9 mn in 2024.
4. Key Drivers of Market Performance
- Banking Sector Strength: Gains in banking stocks like Stanbic, DTB Kenya, and NCBA Kenya were a major driver of the market’s upward trend.
- Increased Turnover: The significant rise in equities turnover indicates heightened trading activity, reflecting improved liquidity and investor participation.
- Foreign Investor Caution: Despite the market’s strong performance, foreign investors continued to offload shares, possibly due to global market uncertainties or profit-taking.
5. Year-to-Date (YTD) Performance Snapshot
| Index | Weekly Gain | YTD Gain |
|---|---|---|
| NSE 20 | 1.6% | 13.6% |
| NSE 25 | 1.4% | 6.7% |
| NASI | 1.2% | 5.4% |
| NSE 10 | 0.9% | 3.9% |
Key Takeaways for Investors
- Market Momentum: The equities market remains bullish, with all major indices posting gains. Investors should monitor large-cap stocks, particularly in the banking sector, for potential opportunities.
- Foreign Investor Activity: The continued net selling by foreign investors may signal caution, but it also presents opportunities for local investors to acquire shares at attractive prices.
- Liquidity Improvement: The significant increase in turnover is a positive sign, indicating improved market liquidity and investor confidence.
Conclusion
The Kenyan equities market continues to show resilience, with strong performances from key sectors and indices. While foreign investor activity remains cautious, the overall market sentiment is positive, supported by increased trading activity and gains in large-cap stocks.
Stay tuned for next week’s update, where we’ll provide further insights into market trends and investment opportunities.