The Nairobi Securities Exchange (NSE) maintained its upbeat start to 2026 in the third trading week, with all key equity indices ending higher even as market activity cooled sharply and foreign investors stepped up selling.
The week marked a pause after the strong rally seen at the start of the year. Gains were underpinned by selective demand in banking, telecommunications and agriculture, while offshore investors shifted firmly into net selling mode.
The NSE All Share Index rose 1.04 per cent to 193.87, adding two points. The NSE 20 gained 0.70 per cent to close at 3,256.54, while the NSE 25 advanced 0.66 per cent to 5,280.48. The NSE 10 edged up 0.61 per cent to 2,034.91. Market capitalisation followed suit, increasing 1.04 per cent to KSh 3.06 trillion.
Trading momentum, however, faded. Equity turnover fell 26.7 per cent week on week to KSh 2.57 billion, while volumes declined 39.3 per cent to 79.2 million shares. Trading concentration also eased, with the top five counters accounting for 58.6 per cent of total value, down from nearly 80 per cent the previous week, signalling a broader spread of activity.
Safaricom once again led the market, posting KSh 549.2 million in turnover, equivalent to 21.4 per cent of weekly value, and closing 2.06 per cent higher at KSh 29.70. KCB Group followed with KSh 277.5 million in trades and a 0.75 per cent gain to KSh 67.50. Equity Group traded KSh 244.2 million but slipped 0.72 per cent to KSh 69.00. NewGold Issuer (RP) recorded KSh 240.5 million, while Absa Bank completed the top five with KSh 194.1 million.
Banking stocks dominated turnover, contributing KSh 1.33 billion, or nearly 52 per cent of total market activity. Telecommunications accounted for KSh 549 million, while manufacturing and allied counters recorded KSh 200.3 million, led by BAT Kenya, which rose 1.23 per cent on KSh 147.5 million in trades. EABL declined 2.15 per cent after trading KSh 40.8 million.
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Energy stocks softened during the week. KenGen fell 1.22 per cent to KSh 9.70, while Kenya Power dropped 1.33 per cent to KSh 14.85, with the two counters generating KSh 150.6 million in turnover.
Leadership rotated to agriculture and media stocks. East African Portland Cement topped the gainers, surging 14.05 per cent to KSh 85.25. Sasini climbed 11.60 per cent to KSh 20.20, extending gains following its return to profitability. Nation Media Group added 7.08 per cent, Eaagads rose 6.51 per cent, and Standard Group advanced 5.12 per cent.
Losses were led by the NewGold ETF, which fell 39.41 per cent over the week. Unga Group declined 7.79 per cent, Home Afrika dropped 5.30 per cent, Kenya Airways eased 4.68 per cent, and Jubilee Holdings lost 3.18 per cent.
Foreign investor sentiment weakened markedly. Foreign purchases totalled KSh 228.6 million, while sales jumped to KSh 1.33 billion, resulting in a net outflow of KSh 1.10 billion. Foreign participation accounted for 31.5 per cent of total turnover, lower than the previous week, with selling pressure peaking mid-week.
Fixed income markets were notably more active. Bond turnover surged 79.2 per cent to KSh 75.68 billion from KSh 42.24 billion, while the Bond Index rose 0.50 per cent to 1,163.47, indicating firm prices amid heavier trading. Derivatives activity slowed, with 3,096 contracts traded worth KSh 5.88 million.
On the corporate front, I&M Group Plc finalised the acquisition of additional shares in I&M Bank (T) Limited after receiving regulatory approvals, further strengthening its regional presence.
Macro conditions remained steady. The shilling traded at 129.03 to the US dollar, KESONIA eased to 8.96 per cent, the Central Bank Rate held at 9.00 per cent, and inflation remained unchanged at 4.49 per cent in December.