The Nairobi Securities Exchange (NSE) snapped a five-day losing streak on July 16, 2025, as the All Share Index (NASI) edged up 0.36% to close at 157.60.
This modest rebound followed a sharp five-session slide from July 9 to July 15, during which the NASI fell by 3.56%, dropping from 162.83 to 157.04.
- •The NSE surged from 123.48 at the start of the year to a YTD peak of 162.83 on July 8, marking a gain of over 31.9% and creating more than KSh 600 billion in new market wealth.
- •Analysts widely attributed the latest downturn to profit-taking, as investors locked in gains after the prolonged uptrend.
- •Despite the correction, market sentiment remains broadly positive.
Year-to-date, NASI is still up 27.6%. Total market capitalization has expanded by nearly KSh 543 billion to KSh 2.48 trillion. Other indices also posted double-digit gains: the NSE 20 Share Index is up 24.2%, the NSE 10 by 19.6%, and the NSE 25 by 19.3%.
Breadth of the Market Rally
Out of more than 60 listed stocks, only seven have recorded negative returns this year. Big movers like Kenya Power (+128.7%), Sameer Africa (+121.4%), and KenGen (+93.4%) have significantly outperformed the broader market.
Kapchorua Tea, despite weak financial results, has surged to an all-time high of KSh 350, supported by bonus share plans and high dividends.
All NSE sector indices are in positive territory YTD, led by Investment (+87.7%), Energy (+56.1%), and Insurance (+53.7%). Even traditionally slower sectors like Agriculture (+7.2%) and Automobiles (+2.6%) remain in the green.
| Sector | YTD Gain (%) |
|---|---|
| Investment | +87.7% |
| Energy & Petroleum | +56.1% |
| Insurance | +53.7% |
| Telecommunications | +51.6% |
| Construction & Allied | +30.9% |
| Commercial & Services | +26.1% |
| Banking | +15.9% |
| Exchange Traded Funds (ETFs) | +19.6% |
| Manufacturing & Allied | +9.2% |
| Agricultural | +7.2% |
| Automobiles & Accessories | +2.6% |
| Real Estate Investment Trusts | +0.0% |
The sharp profit-taking phase reflects a healthy market cycle. Investors are cashing in on rapid gains while market fundamentals stay broadly constructive. With liquidity intact and dividend-paying counters still drawing attention, the correction is viewed as a breather rather than a reversal.
The market’s resilience will now be tested by upcoming corporate earnings and dividend payments scheduled for the third quarter of 2025. These developments are expected to influence short-term investor sentiment.
