The Nairobi securities exchange (NSE), recorded significant dip in its inflows during the first week of September, compared to August’s record of inflows following foreign investor activity that highlights variation of cross boarder capital positioning.
During the first week of September, records from Nairobi Securities Exchange (NSE) show that foreigners sold equities worth KES. 3.35billion against purchases worth KES. 2.17 billion, translating this into a net outflow of KES. 1.18billion. Throughout the week, all trading sessions closed negatively, Thursday projecting the heaviest selling record of KES. 436 million.
This negative turn of events in NSE, follows a period where foreigners had posted their greatest monthly net foreign purchases in four years of KES. 1.65billion in August, which is also the largest inflow since May 2019.
September`s week one trading activity was majorly influenced by Safaricom on both sides with turnover going above KES. 1.5billion in combined buys and more than KES. 2.4billion in sales. Additionally, banks such as Equity, KCB group and Diamond trust bank also projected relatively high activity during the week, while small flows were projected by Umeme, EABL, Jubilee and Stanbic bank.
The negative reversal of August activity notwithstanding, we also see that all through the year NSE has had an unpredictable trend in its foreign flows. From January through April, NSE had great outflows that surpassed KES. 4billion. However, activity in June was marked by a small recess that projected inflows worth KES.820million then afterwards in July the inflows were on a negative trend. The previous August inflows lessened the years deficit but September`s week start shows that the point of view remains delicate.
As at now, Nairobi Securities Exchange (NSE) market status heavily relies on the foreigner’s activity involving whether they choose to support the rally or draw back to selling, which will reflect on its performance even as the final quarter of 2025 approaches.
