NSE 20 Index Rebounds 2.4% After April Slump: Energy, Banks Lead the Charge
The NSE 20 Share Index is back on its feet, up 2.4% from its April low of 2,135 to close at 2,188.7 on April 14.
The 53 point gain is a welcome relief for investors after a tough start to the month.
Energy and banking sectors led the charge, showing resilience despite macro headwinds. Their performance has brought back confidence and activity to the market.
Tariff Pause Lifts Sentiment, Supports Kenyan Shilling
Investor sentiment got a further boost after US President Donald Trump announced a tariff pause on key imports on April 10. The news stabilised the Kenyan Shilling which strengthened to 129.30/80 from earlier levels of 129.50/130.00.
The tariff pause has eased some of the external pressure on Kenya’s trade dynamics and is encouraging inflows into consumer and import dependent stocks. The stronger shilling is also a relief for companies with foreign obligations and has added to the positive market mood.
Trading Activity Picks Up as Buyers Return
Investor interest also surged with April 9 recording a 95% jump in volumes. 25.35 million shares were traded across 2,066 deals worth KES 377 million.
While overall market capitalisation declined slightly to KES 1.93 trillion, the increase in participation shows investors who had stayed out in early April are back in the market.
Key Market Stats:
NSE 20 Index: 2,188.7 (+2.4% from April low)
Shares Traded: 25,353,300
Turnover: KES 377 million
Market Capitalisation: KES 1.93 trillion
What’s Next: 2,240–2,260 in Sight?
Going forward the market is likely to test the resistance levels of 2,240-2,260 which were last seen in late March. Continued momentum in stocks like Kenya Power, Safaricom and major banks will keep the rally going – provided macro conditions remain stable.
There’s hope of regulatory easing for IPOs, infrastructure investments and potential FTSE Russell upgrades which could support better.
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