Kenyan equities market sees bearish sentiment

The Kenyan equities market saw bearish market sentiments prevailing, with total market turnover declining by 55.5 per cent week over week to KES0.65 billion from KES1.46 billion in the previous week. Factors such as dividend payouts from major commercial banks, global interest rate expectations, and a holiday in the middle of the week contributed to the decline. To provide insights into the market performance and expectations, Caleb Mugendi, Investment Manager at Genghis Capital Asset Management, shared his expertise with CNBC Africa from Nairobi, Kenya. Mugendi highlighted the impact of companies closing their books for dividends, global risks affecting investor confidence, and local challenges like adverse weather conditions on market sentiment. Despite the decline in market turnover, foreign investors remained net buyers, while domestic investors engaged in both selling and buying activities. In the fixed income market, the secondary fixed income market turnover also recorded a decline, with investors showing a preference for shorter-dated fixed income securities over medium to longer tenors. Market participants are expected to continue favoring short-term duration instruments due to the current yield curve dynamics.