Shilling surges past the 96 resistance level against the US Dollar

By / Published May 12, 2015 | 7:06 am

Dim performance on the bourse today with the NSE-20 share index rescinding 0.56% to 5042.52 points; the closest it has been this year to traverse below the 5000 points mark as the NASI consequently diminished 0.48% to 170.65 points.

Market capitalization contracted 0.48% to KES 2.38Bn in tandem with equity turnover that retreated 34.10% to 645.19Mn. Equity Group Holdings Ltd (NSE: EQTY) & Safaricom Ltd (NSE: SCOM) were the most active counters accounting for 59.15% of the day’s traded value.

Liberty Kenya Holdings Ltd (NSE: CFCI) shored up 7.61% to close at KES 24.75 on account of heightened activity on the stock.

The insurer has made a mark in the industry being impressively efficient in management of claims and expenses through its cautious risk uptake strategy. This has earned investors a stream of stable earnings and is expected to continue to do so as the insurer steers towards steadfast growth.

On the other hand, Crown paints Ltd (NSE: BERG) was bullish propping up 9.42% to KES 151.00 as the gold rush for the paint manufacturers 2:1 bonus shares continues. Kenya Commercial Bank Ltd (NSE:KCB) books closed for a final dividend of KES 2.00, the counter spiraled to a high of KES 62.00 in the today’s trading session to close at a Vwap of KES 60.00 shedding a slim 0.83%.

Foreign investor participation commenced the week’s trading session on a steady note with foreigner’s accounting for 62.29% of total turnover against 55.25% local participation. Investors engaged in distributive activities resulting in net outflows worth KES 58.95Mn compared to net outflows worth KES 265.50 Mn on Friday.
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 Friday.

Investors were dominant on the sell side recording net outflows worth KES 58.95Mn relative to net outflows worth KES 265.50Mn on Friday.

Equity Group Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 189.97Mn to account for 29.44% of total market activity and 47.27% of foreign activity. Safaricom Limited (NSE: SCOM) followed with a turnover of KES 100.55Mn representing 15.58% of total market activity and 25.02% of foreign activity.

Cooperative Bank Limited (NSE: COOP) posted the day’s highest inflows of KES 26.61Mn, whilst Safaricom Limited (NSE: SCOM) posted the day’s highest outflows worth KES 74.92Mn.

Currency

Performance: The Kenyan Shilling (KES) extended its losses further against the US Dollar (USD) by 1.08% to 96.18, surpassing the 96-resistance level as banks covered short positions accumulated over the weekend, with anticipated end month demand set to commence over next weeks, with continued shedding further anticipated.

On the other hand, the shilling extended further weakening against the Sterling Pound (GBP) by 2.68% to 149.07 after the Conservatives took the election with an outright majority to govern, quelling any uncertainties that were prevalent prior to the win. On the regional front, the shilling further weakened against the Ugandan Shilling (UGX), Tanzanian Shilling (TZS) and the South African Rand (ZAR) by 1.03%, 0.38% and 0.65% respectively.

Large-Cap Index

The Large Cap index declined 0.49% as market capitalization shaved off 0.60% to KES2.00Bn.

Volume of traded shares was down 43.10% to 23,388 shares.