The market rallied, no cap!

No really, it did. Where? The Nairobi Securities Exchange is where. And last week if Lady Luck was on your side, you enjoyed not one, but two rallies (wink wink, some sweet pics here).

What Happened

Before the WRC Safari Rally, the NSE on Tuesday witnessed its biggest single-day gain in 18 months, as blue-chip firms led by Safaricom continued their recent price rally on local investor demand. Sentiment: Positive.

Between The Lines

Remember "Pro Tip #1" above? Big number headlines in financial markets are easy to fall for as click bait if you don't consider prevailing circumstances. In such a story, look for what caused the gain, whether this was an isolated event or the start of a trend, who are the actors & what's motivating them.

Should You Care?

NSE equities are coming off a very low base and multi-year declines and at some point last year, it was the worst performing in Africa. You should pay attention if you're making asset allocation decisions for the new quarter.

Buzzword Translator

• Blue chip refers to a well-established company with a reputation for reliability, stability, and consistent performance. Blue chip stocks are considered core holdings in many investment portfolios due to their stability, and they are often seen as a safe haven during times of market uncertainty.
• Foreign investors look for outsized gains by taking bigger risks in smaller markets. Tracking their activity is important for all investors. Some risks they bring to markets include volatility due to sudden capital inflows or outflows, currency fluctuations, and potential for speculative bubbles.–AG