The Nairobi Securities Exchange (NSE) stretched its rebound into a third straight week, though the pace of recovery clearly cooled.
Market capitalisation inched up by 0.54% to KSh 3,451.45 billion, adding KSh 18.53 billion, a far cry from the hefty KSh 128.42 billion jump recorded the previous week. All major indices finished in positive territory, albeit with rather tame gains, as the NSE 10 barely budged at 0.08%.
Even so, the market has clawed back KSh 209.63 billion of the KSh 231.17 billion wiped out during the sharp Week 13 selloff, leaving just KSh 21.54 billion to fully recover the losses.
The Nairobi All Share Index (NASI) rose 0.54% to 208.13, while the Banking Index climbed 0.95% to 241.14. The NSE 20 added 0.45% to close at 3,606.52, and the NSE 25 edged up 0.25% to 5,756.90.
A key driver of sentiment came from the Central Bank of Kenya weekly bulletin, which highlighted a ceasefire involving the US, Israel, and Iran. The development eased geopolitical tensions that had unsettled markets, though shipping constraints through the Strait of Hormuz persist. Oil prices remain sticky, with Murban crude holding at $89.61 per barrel, only slightly lower than the previous week, suggesting limited immediate relief.
Equity turnover nearly doubled to KSh 5.41 billion from KSh 2.77 billion, largely fuelled by heavy trading in Kenya Pipeline Company, which saw 228.3 million shares exchanged, valued at KSh 2.27 billion, accounting for 41.9% of total activity. Excluding that spike, underlying turnover stood closer to KSh 3.1 billion. Total traded volume surged 279% to 339.77 million shares, again dominated by the same counter.
On the leaderboard, Sameer Africa topped gainers with an 18.69% jump to KSh 19.05. BOC Kenya climbed 12.02% to KSh 139.75, while East African Portland Cement Company rose 7.28%. BK Group advanced 7.11% to KSh 52.00, and Kenya Pipeline Company gained 6.88% to KSh 9.94. Equity Group Holdings added 1.01% to KSh 75.00.
On the losing end, Sanlam Kenya fell 6.06% to KSh 9.30, while I&M Holdings dropped 5.92% to KSh 48.45. Flame Tree Group declined 5.60%, Umeme Limited slipped 4.99%, and Unga Group shed 4.75%. KCB Group eased 2.46% to KSh 69.25.
Sector dynamics shifted notably. Energy and petroleum took the lead, contributing 43.58% of total turnover at KSh 2.3 billion, overtaking banking, which dropped to 28.87% (KSh 1.5 billion) from its usual dominance. Telecommunications accounted for 21.07% (KSh 1.1 billion). The top five counters, including KPC, Safaricom, Equity, KCB, and I&M, made up 84.94% of overall trading activity.
Also Read: Kenya’s Pipeline System Stretched as Fuel Exports Surge by 40%
Foreign investors recorded a net inflow of KSh 78.17 million, marking their first positive position since Week 12 in mid-March and snapping a six-week run of outflows. The turnaround was largely driven by strong inflows on Wednesday and Friday, coinciding with the ceasefire news. Foreign participation stood at KSh 1.51 billion, representing 27.92% of total turnover.
In the fixed income space, bond turnover dropped 23.56% to KSh 40.67 billion, with the Bond Index slipping 0.46% to 1,164.74. Derivatives activity also cooled sharply, with 2,594 contracts traded, worth KSh 17.2 million, down significantly from the prior week.
On the macro front, the Kenyan shilling strengthened slightly to KSh 129.18 against the dollar. Foreign exchange reserves at the Central Bank dipped to USD 13.3 billion, equivalent to 5.6 months of import cover, marking a sixth consecutive weekly decline, though at a much slower pace.
Inflation ticked up marginally to 4.4% in March from 4.3% in February, while remittance inflows rose 9.1% to USD 450.3 million, bringing the 12-month cumulative total to USD 5.08 billion.
Treasury bill yields edged higher, with the 91-day at 7.42%, 182-day at 7.83%, and 364-day at 8.27%. Meanwhile, a 30-year bond auction drew strong demand, oversubscribed at 191.7%, attracting KSh 38.3 billion in bids against an offer of KSh 20 billion.
Eurobond yields continued to ease, with the 2028 issue falling to 7.32% and the 2034 bond to 8.50%, both reflecting improving investor sentiment.
