NSE Falls Below KSh 4Trillion as Safaricom Book-Closure Slump Ends 7-Week Rally

The Nairobi Securities Exchange slipped back below the KSh4 trillion mark in the week ended August 7, ending a seven-week winning streak after Safaricom fell 3.84% in a post-record-dividend book-closure slump and dragged the NASI down 1.17%, even as trading volumes and turnover increased.

• Market capitalization closed at KSh3.945 trillion, down from KSh3.992 trillion a week earlier, after crossing KSh4 trillion for the first time on Monday.
• The decline wiped about KSh46.75 billion from investor wealth and ended the NASI’s longest run of consecutive weekly gains since 2014.
• Safaricom closed at KSh35.10, but remained the market’s most actively traded counter with KSh1.66 billion in turnover, equivalent to 40.12% of total equity activity. 

The correction was not uniform across the market. The NSE 20 was the only index gainer with 0.43% gain to 4,111.14, holding above 4,000, while the NSE 25 fell 0.46% to 6,540.78, the NSE 10 declined 0.76% to 2,529.31, and the Banking Index eased 0.16% to 269.02.

Banking remained a major source of activity with Equity Group falling 1.73% and KCB losing 1.45%, while Co-operative Bank gained 2.73%. East African Breweries advanced 1.88% to KSh285.00, extending its post-results gains despite the broader market retreat.

Among smaller counters, Shri Krishna Overseas led gainers at 29.17%, followed by Sameer Africa at 15.92%, Home Afrika at 13.33%, Car & General at 13.26% and Centum at 10.90%. Kapchorua Tea led the losers with a 9.59% decline, followed by Williamson Tea at 7.81%.

Activity and Rates

Equity activity strengthened despite falling prices. Turnover rose 15.37% to KSh4.15 billion, while trading volume increased 30.45% to 134.55 million shares. Safaricom, Equity, Co-op Bank, EABL and KCB generated KSh3.07 billion, or 74.11%, of total turnover.

Foreign investors remained net sellers, recording a KSh487.19 million outflow, although this moderated from KSh661.01 million the previous week. Foreigners sold on four of the five sessions, while local investors accounted for 68.57% of market activity.