Equities at the Nairobi Securities Exchange (NSE) closed the 22nd week of the year in negative territory, with the benchmark Nairobi All Share Index (NASI) recording a loss despite increased market activity during the period.
NASI declined by 0.3% to close at 205.7 points from 206.2 points recorded in the preceding week, largely driven by losses in large-cap banking stocks such as Equity Group, Stanbic, and DTB-K, which lost 2.3%, 1.8%, and 1.5%, respectively. The performance was, however, supported by gains in market heavyweights such as BAT Kenya and EABL, of 3.4% and 1.3%. Despite the downturn, NASI has gained 10.2% on year-to-date basis.
The NSE 10 and NSE 25 indices closed at 2,154.7 points and 5,659.1 points, down 0.38% and 0.42%, respectively. Conversely, the NSE 20 index advanced by 0.71% to 3,513.1 points. Meanwhile, the Banking Sector declined by 0.67% to 233.48 points from 235.05 points in the prior week.
Trading activity picked up, evidenced by a 44.4% surge in the volume of shares traded to 105.9 million. Consequently, equity turnover rose sharply by 76.4% to KES 4.8 billion from KES 2.7 billion in the previous week.
NSE Weekly Top Gainers and Losers
BK Group PLC led the gainers after rising by 14.1%. Express Kenya ranked second gaining 7.2%, followed by Eaagads PLC, which rose by 6.8%. Standard Group rose by 4.7%, while Shri Krishana Overseas Limited gained 4.1%.
On the downside, Longhorn Publishers was the biggest loser declining by 10.7%. Other notable decliners included Eveready East Africa, BAT Kenya, TPS Serena, and Uchumi Supermarket. The counters fell by 8.9%, 4.3%, 4.1%, and 3.2%, respectively.
Participation
Local investors dominated the market, recording a turnover of KES 3.3 billion, equivalent to 68% of the market’s total turnover. Foreign investors accounted for KES 1.5 billion in turnover, representing 32% of total market activity.
Foreign investors turned bullish, recording net inflows of KES 1.7 billion compared to net outflows of KES 245 million in the previous week.
Fixed Income
The fixed income segment gained momentum, albeit at a slower pace than the equities. Bond turnover reached KES 37.1 billion up 25.9% from KES 2.7 billion in the prior week.
NSE Outlook: Inflation and Interest Rate Expectations in Focus
Kenya’s inflation accelerated to 6.7% in May from 5.5% in April, driven by high fuel prices stemming from the Middle East conflict that has kept global oil prices elevated. The uptick signals a potential monetary policy tightening by the Central Bank of Kenya (CBK) in the coming Monetary Policy Meeting (MPC) scheduled for June 9, 2026.
For the NSE, increased inflation may weigh on investor sentiment as fixed income instruments such treasury bills become more attractive as they offer higher yields and corporate profit margins come under pressure from rising operating costs.
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