Kenya Equities Market Weekly Update – Week Ending 9th May 2025

During the week ending 9th May 2025, the Kenyan equities market recorded a positive performance across all major indices. The Nairobi All Share Index (NASI) led the gains, increasing by 1.0%, while the NSE 10, NSE 25, and NSE 20 rose by 0.9%, 0.5%, and 0.1%, respectively. This brought the year-to-date (YTD) performance to:

• NSE 20: +2.5%
• NASI: +1.2%
• NSE 10: –3.2%
• NSE 25: –1.8%

Key Drivers of Market Movement

The week’s positive momentum was driven by strong gains in large-cap counters:

• Equity Group: +2.9%
• Safaricom Plc: +2.8%
• East African Breweries Ltd (EABL): +1.5%

These gains were partially offset by declines in:

• Absa Bank Kenya: –3.2%
• Standard Chartered Bank Kenya: –2.9%
• Diamond Trust Bank (DTB-K): –2.4%

Regional Market Performance

The East African Exchanges 20 (EAE 20) index remained relatively unchanged during the week. Losses in Airtel Uganda (–5.7%), Absa Bank Kenya (–3.1%), and CRDB Bank (–3.0%) were balanced by gains in Equity Group (+3.1%), Safaricom (+2.9%), and Stanbic Uganda (+2.3%).

Market Activity

• Weekly Turnover: Increased by 41.2% to USD 13.8 million, up from USD 9.8 million in the previous week.
• YTD Turnover: Stands at USD 275.2 million.
• Foreign Investor Activity: Net sellers for the fifth consecutive week, with a net outflow of USD 0.3 million, bringing the YTD foreign net selling position to USD 32.0 million, compared to USD 16.9 million in 2024.

Earnings Highlight

📌 Stanbic Holdings Q1’2025 Results

• PAT: Decreased by 16.6% to Kshs 3.3 bn, down from Kshs 4.0 bn in Q1’2024.
• Operating Income: Dropped by 7.1% to Kshs 9.5 bn.
• Operating Expenses: Increased by 13.6% to Kshs 5.5 bn, largely due to a 9.1% rise in staff costs.

📌 Safaricom FY’2025 Results

• Group PAT: Rose by 7.3% to Kshs 45.8 bn, up from Kshs 42.7 bn in FY’2024.
• Revenue: Increased by 11.2% to Kshs 388.7 bn.
• Operating Costs: Climbed by 16.3% to Kshs 216.5 bn, driven by rising operating and investment-related expenses.

Outlook

The uptick in market indices coupled with increased trading activity reflects improved investor sentiment, potentially driven by positive earnings releases and a stable macroeconomic environment. However, continued foreign investor net selling and uneven performance across sectors indicate lingering cautiousness in the market.