Weekly Equities Market Update – Week Ending 18th April 2025

Kenya’s equities market continued its downward momentum during the week, with all major indices closing in the red:

• NSE 10 fell the most, down 1.2%
• NASI declined by 1.1%
• NSE 25 dropped 0.9%
• NSE 20 slipped by 0.7%

On a year-to-date basis:

• NSE 20 remains positive at +4.5%
• NASI, NSE 25, and NSE 10 have declined by 0.01%, 2.0%, and 3.9% respectively.

🔻 Market Drivers

The overall negative performance was driven by significant sell-offs in key large-cap counters:

• East African Breweries Limited (EABL): –5.7%
• Safaricom: –2.0%
• Cooperative Bank: –0.3%

These losses were slightly offset by gains in select counters:

• Diamond Trust Bank (DTB-K): +4.6%
• Stanbic Bank: +4.5%
• Absa Bank: +1.5%

📊 Market Activity

• Equities turnover declined significantly by 40.7%, down to USD 7.4 million from USD 12.5 million the previous week.
• Foreign investors remained net sellers for the second consecutive week, with a net outflow of USD 1.7 million, compared to USD 3.8 million the week before.
• YTD net foreign outflows now stand at USD 29.7 million, up from USD 16.9 million during the same period in 2024.

📉 Earnings Highlight – Bamburi Cement Plc FY’2024 Results

Bamburi Cement reported a deepening of losses, highlighting ongoing operational and structural challenges:

Key Highlights:

• Loss after tax widened to Kshs 0.9 billion, a 126.8% increase from the Kshs 0.4 billion loss in FY’2023.
• Profit from continuing operations declined by 89.0% to Kshs 0.1 billion.
• Turnover slipped slightly by 0.5% to Kshs 21.9 billion, while operating costs dropped by 5.0% to Kshs 19.8 billion, leading to a 31.5% decline in operating profit.
• Total assets contracted by 36.5%, largely due to a significant 76.4% decline in current assets, driven by internal restructuring.
• No final dividend was declared for FY’2024, though a special dividend of Kshs 18.25 per share was paid following the Hima Cement disposal.

🧾 Summary

The equities market reflected mixed investor sentiment amid selective accumulation in bank stocks and continued selling pressure in key counters. Bamburi’s disappointing performance may weigh on investor confidence in the near term, especially in the industrial segment. Overall, volatility remains elevated and foreign exits persistent.