The Nairobi Securities Exchange (NSE) experienced a decline in market capitalization in September, with a loss of nearly Sh96.3 billion. This represents a 2.28% drop to Sh4.12 trillion, down from Sh4.22 trillion in August. The decline was attributed to a broader decline in share prices, with the All-Share Index (NASI) also falling by 2.28% during the month.
The NSE's market capitalization had previously crossed the Sh4 trillion milestone on August 3, 2026, reaching Sh4.013 trillion. However, the market experienced a sharp mid-September dip, briefly falling below the Sh4 trillion mark and losing over Sh336 billion in value. The decline was witnessed across various sectors, with the NSE 20 Share Index falling marginally by 0.20%, while the NSE 25 Share Index bucked the trend to rise 0.25%.
Trading activity on the NSE remained concentrated in large companies, with Safaricom being the most actively traded stock. The company accounted for 24.23% of total equity turnover, generating Sh7.01 billion in traded value. Other top performers included Absa Bank, Equity Group, and KCB Group, which dominated trading activity and reflected the continued importance of large-cap banking and telecommunications stocks to liquidity at the NSE.
Despite the overall market decline, some counters posted significant gains. Africa Mega Agricorp, formerly known as Kenya Orchards Limited, emerged as the biggest gainer, rising 107.16% month-on-month. On the other hand, Shri Krishana Overseas Limited recorded the steepest decline, falling 20.23% during the month. The banking sector was the strongest performer, recording a gain of 83.75%, while the exchange-traded funds (ETFs) segment was the weakest, declining 8.84%.
The derivatives market on the NSE recorded a substantial increase in activity, with deals rising 75.18% to 240 in September, and traded volume increasing 234.25% to 48,854. Turnover surged 223.49% to Sh235.5 million. However, the fixed-income market moved in the opposite direction, with bond turnover declining 14.08% month-on-month to Sh293 billion.
The NSE also hosted discussions with Dangote Group President Aliko Dangote and East African institutional investors on September 29, regarding access to the Dangote Petroleum Refinery IPO. The Capital Markets Authority approved the participation of eligible Kenyan investors in the IPO through Global Depository Receipts, which will be listed on the NSE.
The September performance of the NSE presents a mixed picture, with overall valuations weakening, but liquidity remaining concentrated in blue-chip counters. The acceleration of derivatives activity and potential cross-border listings offer new avenues for expanding investment opportunities. Key sectors and stocks will likely continue to drive trading activity on the exchange.
Key points
- The NSE's market capitalization fell by 2.28% to Sh4.12 trillion in September.
- Safaricom was the most actively traded stock, accounting for 24.23% of total equity turnover.
- The derivatives market recorded a substantial increase in activity, with deals rising 75.18% to 240 in September.
