The Nairobi Securities Exchange reported low activities in the first week of May, following a global trend that saw major stock exchanges take a hit from trade tariff wars that have weakened the US dollar.
Data from the weekly bulletin by the Central Bank of Kenya shows that the NASI, NSE 25 and NSE 20 share price indices decreased by 0.05 per cent, 0.45 per cent, and 0.76 per cent respectively during the week ending April 30, 2025.
Market capitalisation, total shares traded, and equity turnover decreased by 0.04 per cent, 60.3 and 0.40 per cent, respectively. This saw investors lose close to Sh10 billion in paper wealth.
The US dollar continued its slide against other major international currencies on May 1, falling to its lowest level since 2022, as global investors retreat from US assets in the face of tension between President Donald Trump and the Federal Reserve.
The ICE US Dollar Index, which measures the greenback against a basket of foreign currencies, fell as low as 97.92. That’s the lowest level for the index since March 2022, according to FactSet. The index was last down one per cent on the day at 98.38.
Last week, China hinted of easing trade tariffs with the US, a move that saw
Wall Street extended its gains to a ninth straight day Friday, marking the stock market’s longest winning streak since 2004 and reclaiming the ground it lost since President Trump escalated his trade war in early April.
The rally was spurred by a better-than-expected report on the U.S. job market and resurgent hope for a ratcheting down in the U.S. trade showdown with China.
The S&P 500 climbed 1.5 per cent. The Dow Jones Industrial Average added 1.4 per cent, and the Nasdaq composite rose 1.5 per cent.
Unga Group Plc, a prominent player in the manufacturing sector, continued to experience a notable surge in its stock price. The firm, which trades at the Nairobi Securities Exchange under the ISIN code KE0000000497, has seen its shares trade at an average volume of 600 since March.
The firm’s performance on the NSE highlights its position within the manufacturing category, a sector that continues to draw significant attention from investors. Unga Group returned to profitability in February after an almost three -year dry spell.
Eaagads, which engages in growing, blending and selling of coffee products both locally and in the international market, was the second biggest gainer at NSE as investors rushed to benefit from rising coffee prices in the global market.
Coffee prices have been increasing due to a combination of factors, including weather-related challenges in major producing countries like Brazil and Vietnam, increased global demand, and supply chain disruptions. The share price gained 6.25 per cent to close the week at Sh12.75
Stanbic Bank and NCBA Bank were the biggest losers, with their share prices shedding 10 and 8.25 per cent respectively.
The Treasury bill auction of April 30 received bids totalling Sh18.4 billion against an advertised amount of Sh24 billion, representing a performance of 76.6 per cent. Interest rate on the 91-day and 364-day Treasury bills declined while that of 182-day Treasury bills remained stable.
During the week, the reopened 15-year and 25-year fixed rate treasury bonds received bids totalling Sh57.1 billion against an advertised amount of Sh50 billion, representing a performance of 114.2 percent. Bond turnover in the domestic secondary market however decreased by 0.8 per cent.
