EABL Drives NSE Trading Activity as Foreign Investors Return to Buying

The Nairobi Securities Exchange (NSE) posted a modest retreat in the week ending June 12, with all key indices closing lower following the previous week’s strong gains. The NASI declined 0.75% to 208.79, while the NSE 25 lost 0.59% to settle at 5,755.01. The NSE 20 edged down 0.40% to 3,543.42, and the Banking Index slipped 0.58% to 237.99.

Market capitalisation fell by KSh26.22 billion to KSh3.46 trillion, reflecting a period of consolidation rather than heavy selling pressure. Equity turnover remained largely unchanged at KSh3.45 billion from 94.01 million shares traded.

East African Breweries PLC (EABL) emerged as the week’s most actively traded counter, accounting for KSh877.5 million, or 25.46% of total market turnover, from 3.5 million shares exchanged. The stock gained 3.95% to close at KSh250 as investors positioned themselves ahead of Asahi’s planned indirect acquisition of a 65% stake through the Diageo Kenya transaction.

Safaricom recorded the highest turnover at KSh931.7 million but shed 1.89% to close at KSh31.15.

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Within the banking sector, Stanbic Holdings advanced 2.63% to KSh292.50, while Equity Group declined 2.27% to KSh75.50 and KCB Group lost 2.12% to KSh69.25. Banking stocks accounted for 35.59% of total market activity, representing KSh1.2 billion, marking their lowest contribution in recent weeks as manufacturing stocks gained prominence largely due to EABL’s performance.

Foreign investors reversed last week’s net outflow of KSh251 million, posting net inflows of KSh457.35 million. Wednesday and Thursday alone attracted KSh433.85 million in foreign buying, with overseas investors accounting for 41.14% of total market activity.

Fixed Income Market Remains Under Pressure

Although the Central Bank of Kenya maintained its benchmark lending rate at 8.75% on June 9, yields in the fixed-income market continued to rise independently. The 91-day Treasury bill climbed to 8.71%, the 182-day paper rose to 8.60%, while the 364-day bill increased to 8.87%, all reaching cycle highs.

The bond market remained under pressure, with the Bond Index falling 1.28% to 1,122.66. This marked its third consecutive weekly decline and a cumulative drop of 3.25% over the past three weeks.

Meanwhile, Murban crude oil prices eased to $84.60 per barrel from $87.38 amid optimism surrounding US-Iran negotiations. The European Central Bank raised its benchmark rate to 2.25%, becoming the first major central bank to tighten monetary policy in response to the recent oil price shock.

Top Gainers and Losers

Uchumi Supermarkets led the gainers with a 13.79% increase. Car & General extended its rally, rising 10.62% to KSh93.75, while EA Portland Cement gained 7.19% and Home Afrika advanced 5.60%.

On the losing side, Olympia Capital declined 9.19%, Jubilee Holdings dropped 6.60%, Sanlam Kenya fell 5.87%, and the NewGold ETF lost 5.64%.

Other Market Highlights

Kenya’s foreign exchange reserves increased slightly to $13.24 billion, equivalent to 5.6 months of import cover. The Kenyan shilling remained relatively stable at KSh129.48 against the US dollar.

Bond market turnover surged by 149.92% to KSh58.74 billion, while the derivatives market recorded 5,596 contracts valued at KSh27.3 million.

Corporate Developments

• WPP Scangroup released the results of its annual general meeting voting.
• Africa Mega Agricorp appointed Phillip Ndabari Muriuki as chairman.
• Shri Krishna Overseas named Jacqueline Rotich as company secretary.

Key Economic Indicators for Week Ended June 12, 2026