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Analysts said the infrastructure, a critical segment of the Northern Corridor project linking the port of Mombasa with the Great Lakes Region's landlocked states, shows Kenya's determination to be an infrastructure hub. That would help strengthen the regional investment environment since it would significantly lower the cost of production and improve access to markets, they said.

An unnamed Blue House official told local reporters earlier in the day that the meeting between the emissaries and the DPRK leader bore fruits, which were "not disappointing."

Analysts said easier access to private terminals would help China offtake more cargo.

Analysts expect that market sentiment may recover in the second half as earlier pledges to boost confidence by the government may take some time to take effect.

Analysts from Hebei Yuan Da Security Investment Consulting wrote in a note that the decline mainly came from companies that witnessed intensive trading previously. But the big picture is still a looming strong rebound in the short term.