Shilling continues to slide as currencies bounce around on data releases

The bourse pared down marginally as the NSE-20 share index shaved off 0.08% to 5070.75 points while the NASI dipped 0.03% to 171.47 points.

Market capitalization dwindled a thin 0.03% as equity turnover that shrank 26.25% to 979.05 points.

Safaricom Ltd (NSE: SCOM) & East African Breweries Ltd (NSE: EABL) were the most active counters accounting for 62.83% of the day’s traded value.

The market closed on a dreary note with most stocks taking losing positions while a few remained unchanged. Kenya Commercial Bank Ltd (NSE: KCB) was on the rise following a sustained slump this week gaining 2.54% to close at KES 60.50.

The counter had achieved a 6 month peak of KES 65.00; however, strong investor outflows gashed the stock to lows of KES 59.00 in the previous trading day. As book closure, 11th May 2015, approaches heightened activity is expected as demand side pressures lead to further price appreciation. Final dividend books closed today for BOC Kenya Ltd (NSE: BOC), Housing

Finance Corporation Ltd (NSE: HFCK) and East African Cables Ltd (NSE: CABL), the counters downturned in today’s session signaling diminished investor appetite for the shares ahead of their book closures.

Foreign investor participation wound up the week’s trading session on a steady note with foreigner’s accounting for 55.25% of total turnover against 45.74% local participation. Investors engaged in profit taking activities resulting in net outflows worth KES 265.50Mn compared to net inflows worth KES 198.83Mn on Thursday.

The highlights of the day’s trading activity are listed below:

Foreign investors accounted for 55.25% of the NSE turnover as compared to 55.98% on Thursday.

Investors were dominant on the sell side recording net outflows worth KES 265.50Mn relative to net inflows worth KES 198.83Mn on Thursday.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 255.34Mn to account for 26.08% of total market activity and 48.08% of foreign activity. East African Breweries Limited (NSE: EABL) followed with a turnover of KES 115.45Mn representing 11.79% of total market activity and 21.74% of foreign activity.

Carbacid Limited (NSE: CARB) posted the day’s highest inflows of KES 22.87Mn as, whilst Safaricom Limited (NSE: SCOM) posted the day’s highest outflows worth KES 231.12Mn.

Currency

Performance: Another disappointing week for the shilling, the currency drifted lower against the US Dollar (USD) by 0.11% to KES 95.49, due to local market fundamentals. This is despite a strong opening at KES 95.100, KES 0.05 stronger than the previous market close, and lower-than-expected Nonfarm Payrolls dragging the greenback.

On the contrary, the shilling shed against the Sterling Pound (GBP) – by 0.87% to KES 147.26- due to favourable economic outcomes, as Prime Minister David Cameron swept to victory; ending concerns that drawn out talks would be needed to form a government.

This week highlights a period in which both the USD and GBP are highly data dependent and volatile, showing currencies are following what really matters in the economy. Against the Euro (EUR) and South African Rand (ZAR) the shilling weakened sliding 1.48% to KES 107.43 and 0.46% to KES 8.01, respectively. However amongst neighbouring countries the Kenyan shilling saw more favourable results, gaining 0.06% to 31.51 and 0.07% to 20.80 against the Ugandan Shilling and Tanzanian Shilling, respectively.

Large-Cap Index

The Large Cap index appreciated 0.15% as market capitalization rose a slim 0.04% to KES2.01Bn. Volume of traded shares was up 15.72% to 41,103 shares.

• Kenya Commercial Bank Ltd (NSE: KCB) gained 2.54% to KES 60.50, marking the day as the top gainer in the large cap segment.

• Centum Investments Ltd (NSE: ICDC) reversed previous days performance declining 2.99% to KES 65.00.

Mid-Cap Index

The Mid Cap index declined 0.71% as market capitalization shed 0.28% to KES 274.49Bn.Volume of trades advanced 186.18% to 7.74Mn.

• Umeme Ltd (NSE: UMME) was up 8.53% to KES 18.45 as 500 shares were traded on the counter.

• TPS Serena Ltd (NSE: TPSE) reversed previous days performance rescinding 4.76% to KES 35.00.

Small-Cap Index

The Small Cap Index rescinded 1.11% in tandem with market capitalisation that dipped 0.77% to KES 39.60Bn.

• East African Portland Ltd (NSE: PORT) was up 1.89% to close at a Vwap of KES 54.00 with a slim 200 shares traded.

• Unga Ltd (NSE: UNGA) dipped 6.88% to a Vwap of KES 44.00 as only 300 shares were traded on the stock.