The Nairobi Securities Exchange (NSE) recorded a modest uptick on August 6, 2025, as a mix of positive earnings expectations and cautious sentiment around interest rate trends shaped investor activity.
The NSE All Share Index edged up 0.46 percent to close at 127.52 points, extending a mild recovery that began earlier this week after a volatile July driven by external macroeconomic shocks and domestic liquidity concerns.
Investor interest was concentrated in a few blue-chip counters, particularly in the banking and telecommunications sectors. Safaricom remained the most traded stock of the day, continuing to attract attention from both local and foreign institutional investors amid expectations of a strong dividend payout and resilient full-year results.
The counter gained 1.8 percent on improved demand and positive sentiment over its regional expansion strategy.
Banking stocks also saw renewed activity, with Equity Group and KCB registering marginal gains following market speculation that sector-wide profitability in the first half of the year may outperform earlier forecasts.
Analysts cite improved non-funded income and reduced loan loss provisions as likely contributors to the strong showing expected in the upcoming earnings season.
Turnover at the bourse stood at approximately Sh532 million, with foreign investor participation showing a slight rebound compared to last week.
Net foreign inflows were positive, signaling renewed interest in the Kenyan market despite persistent concerns over currency volatility and sovereign debt levels.
Meanwhile, the bond market remained largely subdued, with investors appearing to adopt a wait-and-see approach ahead of a key auction by the Central Bank later this week.
Yields on medium-term government securities were largely flat, reflecting the delicate balance between inflation expectations and policy rate direction.
Market players remain cautious amid broader uncertainties in the global financial system, including geopolitical risks and monetary tightening in developed economies.
However, the steady performance of selected NSE counters and renewed foreign appetite are seen as early signs of improving sentiment at the local exchange.
Traders will continue to watch corporate earnings announcements and macroeconomic indicators in the coming days, which are likely to dictate the short-term momentum of the Nairobi market.
Written By Ian Maleve
