Kenyan Shilling posts losses against major peers

Crown Paints up 3.66% Ahead of Bonus Issue

On the fourth trading session of the week, mixed sentiments were observed in the equities market as the decliners outweighed the advancers. The NSE-20 share index appreciated by 0.12% to 4796.26 points as the NASI lost ground by 0.12% to 162.82 points. Market capitalization declined by 0.13% to KES 2.277Bn on account of a 0.58% decline on mid cap counters’ total capitalization. Equity turnover gained a hefty 130.08% to KES 1.425Bn following amplified market activities as depicted by the volumes traded which crossed the 50Mn mark last seen in late May.

Post the 2015/2016 budget release and the revision of the CBR rate to 10%, the equities market seems to have resumed normalcy as investors continue to react to the corporate actions taking precedence. In the coming week, Crown Paints Ltd (NSE: BERG) is set to be closing their books for their dividend payment and their 2:1 bonus issue on 24th June 2015. This resulted in renewed accumulation activities from investors pushing the share price up by 3.66% to KES 170.00. Limuru Tea Co. Ltd (NSE: LIMT) will also be closing their books for the share split of 1:2 slated for 25th June 2015. The stock however posted nil activity in today’s trading session standing at KES 1033.00.

NSE Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most traded stock accounting for 36.88% of the total value traded as Safaricom Ltd (NSE: SCOM) lagged behind accounting for 27.47% of the days traded value.

B.O.C. Kenya Ltd (NSE: BOC) capped the gainers list soaring up by 5.38% to KES 137.00. Sameer Africa Ltd (NSE: FIRE) followed suit registering a 5.00% gain to KES 5.25 settling down as the day’s second best gainer position.

Liberty Kenya Holdings Ltd. (NSE: CFCI) was the major slacker of the day losing 5.15% to KES 23.00. Uchumi Supermarkets Ltd (NSE: UCHM) dwindled by 3.80% to KES 8.85 which could be attributed to negative investor sentiments playing hard on the share price as investors continue selling off their shares.

Foreign Investor Participation

Foreign investor participation remained mellow during Thursday trading session accounting for 47.81% of total turnover against 52.19% local participation. Investors engaged in distributive activities; resulting in net outflows worth KES 72.82Mn compared to net outflows worth KES 12.44Mn on Wednesday.

Foreign investors accounted for 47.81% of the NSE turnover as compared to 17.17% on Wednesday.

Distributive activities outweighed accumulative activities, resulting in net outflows worth KES 72.82Mn relative to net outflows worth KES 12.44Mn on Wednesday.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 337.28Mn to account for 49.49% of total market activity and 23.66% of foreign activity whilst East African Breweries Limited (NSE: EABL) followed with a turnover of KES 94.08Mn representing 6.60% of total market activity and 13.80% of foreign activity.

Kenya Commercial Bank (NSE: KCB) posted the day’s highest inflows of KES 12.08Mn, whilst Safaricom Limited (NSE: SCOM) posted the day’s highest outflows worth KES 41.26Mn.

Tight liquidity cushions Kenyan Shilling’s slide

Performance: The Kenyan Shilling posted losses against major peers during Thursday’s trading session. The USDKES exchange rate shed 0.30% to 98.20 (12:30pm GMT) as it was weighed down by dollar demand from the manufacturing segment as companies sought dollars to make payments for imports.

On the other hand, the Dollar weakened sharply globally after the Federal Reserve committee hinted towards a gradual rate hike in the coming months as inflation rises towards their target level.

Meanwhile, the Sterling Pound soared to a seven month high against the Dollar, garnering support from strong retail sales data which rose in line with expectations in May, underlining optimism over the country’s economic outlook and supporting the case for higher interest rates, even though all committee members of the BOE voted to keep rates on hold during yesterday’s meeting. Consequently, the GBPKES took a long stride down, weakening by 1.33% as it hit a new low of 156 (12:30pmg GMT).