The Nairobi Securities Exchange (NSE) begins trading today amid a cautiously optimistic market environment, reflecting gradual improvements in investor sentiment and underlying economic stability.
Equity indices are showing mixed movements. The NSE All Share Index is trading near its recent levels, with modest gains observed across select blue-chip stocks.
Notably, the NSE 10 Share Index, which tracks the performance of the top ten listed firms, closed recently at approximately 1,370.7 points, marking a marginal increase from the previous session an encouraging signal for investors monitoring the broader market trend. Adding to the sense of a rebound, total investor wealth at the exchange has climbed back to around Ksh 2.025 trillion, a two-year high last seen in late 2022.
This upswing has been credited largely to a stable Kenyan shilling bolstering foreign investor confidence and strong performances by counters like Kenya Airways, Kenya Power, KenGen, and I&M Group.
Despite these bright spots, market activity remains uneven. In recent trading sessions, turnover dipped, and equity indices such as NASI, NSE 20, and NSE 25 have edged lower ranging from slight losses to flat performance suggesting intermittent caution among investors.
Foreign investors have appeared notably subdued, with local market participants shouldering the bulk of trading activity.
Reflecting the exchange’s strategic direction, NSE recently finalized the inclusion of new constituent companies such as HF Group Plc, Diamond Trust Bank Kenya, and Carbacid Investments into its major benchmark indices as part of its semi-annual review.
These updates, effective from early June 2025, are designed to align indices more closely with current market dynamics.
Over the longer term, the NSE has posted a strong recovery. In 2024, investor wealth jumped by approximately Ksh 420 billion to Ksh 1.9 trillion, driven by a 29 percent surge in the All Share Index and notable gains in energy and banking sectors. This improvement was supported by factors such as the timely repayment of a Eurobond, inclusion of multiple Kenyan firms in the MSCI Frontier Markets indices, and reforms in the fixed income market.
Meanwhile, the exchange demonstrated operational resilience by diversifying revenue streams in 2023.
Amid global and domestic financial headwinds, NSE managed a noteworthy 34 percent increase in profit after tax largely attributed to non‑trading income, including new product offerings like the country’s first REIT and Sukuk bond listings.
Overall, today’s trading at the Nairobi Securities Exchange reflects a balancing act: cautious optimism underpinned by structural improvements and rising investor confidence.While volatility persists, long‑term indicators suggest that the bourse is on a progressive recovery path.
