Nairobi Securities Exchange Sees Broad-Based Losses as Investor Caution Grows
Market Indices Decline Amid Foreign Capital Flight
All four benchmark indices at the Nairobi Securities Exchange (NSE) closed in negative territory, signaling growing investor caution. The NSE All Share Index (NASI) fell 0.8%, while the NSE 10, NSE 20, and NSE 25 declined by 0.7%, 0.6%, and 0.9% respectively. These losses, though moderate, indicate a gradual erosion of confidence, particularly with sustained foreign capital outflows.
Increased Trading Activity Amid Falling Prices
Despite the downward trend, market turnover surged 24.8% to $2.2 million, suggesting heightened activity in select counters. This unusual combination of rising volume and falling prices points to profit-taking and foreign exits rather than new investments. Local investor participation dipped slightly to 50.9% from 54.9% the previous day, reflecting domestic caution.
KCB Group Dominates Trading Activity
KCB Group accounted for 57.8% of total turnover, though its share price only edged up 0.8% to KES 38.30. This suggests large-volume selling rather than genuine buying interest, with foreign investors leading the exits.
Sector Performance Highlights
Banking stocks showed mixed performance:
- Equity Group and DTB both fell 1.0%
- StanChart gained 0.2% to KES 300.00
- BK Group dropped 3.0% to a 31-week low
Other notable movers:
- Safaricom declined 0.6% to KES 17.35
- BAT slipped 0.4% to KES 370.75
- Sameer Africa surged 9.9% in speculative trading
- WPP Scangroup plunged 7.5% on profitability concerns
Foreign Investor Activity
Foreign investors recorded their fifth consecutive day of net outflows totaling $1 million. While Equity Group led the sell-off, KCB Group surprisingly saw buying interest, showing selective foreign positioning.
Silver Linings in a Tough Market
I&M Bank’s upcoming dividend (KES 1.70 per share with a 16th April 2025 book closure) offers some positive news for income-focused investors. The market shows underlying resilience with selective gains and continued local investor presence.
Analysts suggest watching for value in high-dividend stocks and monitoring index levels for potential reversal signals as the NSE navigates current challenges.
Related Reading: What to Look For When Investing in Stock Market