Kenyan Shilling slides against the dollar

Repressed Insurance Segment

Dwindling performance in today’s trading session as both indices slid reversing previous day’s gains.

The NSE-20 share index diminished 0.35% to 4924.45 points while the NASI dipped 0.27% to 167.38 points. Market capitalization contracted by 0.27% to KES 2.34Tn as equity turnover propped up 87.27% to KES 1.80Bn. East African Breweries Ltd (NSE: EABL) and Kenya Commercial Bank Ltd (NSE: KCB) were the most active counters accounting for 54.78% of the day’s traded value.

The insurance sector has been downtrodden this week with Pan African Holdings Ltd (NSE: PAFR) slicing close to 39.20% to KES 76.00 since the stock began to trade ex bonus. In addition, British American Investments Ltd (NSE: BRIT) has shaved off 4.44% to close at KES 21.50 as Equity Group holdings Ltd (NSE: EQTY) CEO James Mwangi resigned his directorship in the firm. Non-disclosure on the motive of his resignation has provoked sell offs on the counter as investors question what is brewing in the insurer’s executive boardroom. Cooperative Insurance Company Ltd (NSE: CIC) books closed for its final dividend of KES 0.10 as the share retreated 1.12% to KES 8.85.

NSE Equity Market Highlights

East African Breweries Ltd (NSE: EABL) was the most traded stock of the day accounting for 32.82%of the
total value trade with Kenya Commercial Bank Ltd (NSE: KCB) subsequently accounting for 21.96% of the total value.

Olympia Capital Holdings Ltd (NSE: OCH) reversed previous days performance gaining 8.70% to KES 5.00 as demand on the counter peaked in today’s session. Whereas Total Kenya Ltd (NSE: TOTL) shot up 6.82% to KES 23.50.

Flame Tree Group Holdings Ltd (NSE: FTGH) was the biggest loser shedding 8.23% to a Vwap of KES 7.25 as Pan Africa Insurance Holdings Ltd (NSE: PAFR) shrank 7.88% as investors sustain distribution activities post the books closure of the 1:2 bonus issue.

Foreign Investor Participation

Foreign investor participation wavered slightly during Wednesday’s trading session accounting for 42.99% of total turnover against 57.01% local participation. Investors engaged in accumulative activities resulting in net inflows worth KES 27.97Mn compared to net inflows worth KES 10.36Mn on Tuesday.

Foreign investors accounted for 57.01% of the NSE turnover as compared to 63.31% on Tuesday.

Investors were dominant on the buying front recording net inflows worth KES 27.97Mn relative to net inflows worth KES 10.36Mn on Tuesday.

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 375.07Mn to account for 31.78% of total market activity and 55.74% of foreign activity. Kenya Commercial Limited (NSE: KCB) followed with a turnover of KES 71.98Mn representing 6.10% of total market activity and 10.70% of foreign activity.

Kenya Commercial Limited (NSE: KCB) posted the day’s highest inflows of KES 27.66Mn, whilst Safaricom Limited (NSE: SCOM) posted the day’s highest outflows worth KES 48.78Mn

Currency

Performance: The Kenyan Shilling (KES) shed against the US Dollar (USD) by 0.47% to KES. 96.80, despite U.S producing less-than-expected crude oil inventory results; that faired adversely for the economy. With earlier predictions of Central Bank of Kenya’s (CBK) participation in the market not materializing.

A similar situation played out across the pond as the shilling lost against the British Pound (GBP) by 0.82% to KES. 150.58, as the later gained against all 16 of its major currencies. This was spurred by a Bank of England (BOE) official stating that the economic slack, estimated at 0.5%, is likely to be absorbed within a year; signalling potential inflation pressures that will require monetary tightening. Similar losses by 0.18% to KES. 107.49 against Euro (EUR) and o.62% to KES.8.15 to the South African Rand (ZAR) summed up a poor performing mid-week for the shilling; which only gained against its neighbouring currencies.