NSE Activity slows as foreigners exit major counters

Key Takeaways

• The Nairobi Securities Exchange (NSE) shed KSh 104.7 billion in market value last week, reducing its capitalization from KSh 3.4 trillion to KSh 3.3 trillion.
• The market decline was primarily caused by foreign investors, who were net sellers throughout the week, offloading KSh 855.4 million in equities.
• The selling was highly concentrated, with foreign exits from Safaricom and major banking stocks (Equity, Absa, BKG, Coop Bank) accounting for 73.4% of total net foreign selling.
• Safaricom's significant weight (approximately 40%) in the NASI index meant its KSh 292.8 million net foreign outflow mechanically dragged down the overall index.
• Local investors provided a critical counterbalance by absorbing 64% of the turnover, preventing a more disorderly and severe market adjustment.