Shilling Marginally Gains as USD 350Mn Pipeline Deal Announced

Kenyan Shilling Marginally Gains as USD 350Mn Pipeline Deal Announced

The Kenyan shilling extended Wednesday’s trading on a positive note against all its international peers and most of its regional peers. The shilling advanced by a further 0.19% against the US Dollar (USD) to settle at 101.78 coming off the announcement of a USD350Mn loan for financing the Nairobi-Mombasa pipeline.

Further gains were registered by the shilling against the Sterling Pound (GBP) by 0.24% to 158.94 as UK data indicated that the unemployment rate increased to 5.6%. The shilling, however, marginally shed against the South African Rand (ZAR) by 0.05% as the South African retail sales data picked up by 2.4%.

Safaricom Ltd Loses 9% in Three Months

Mixed performance was observed in Wednesday’s trading session with a few stocks recouping their recent loses. The NSE-20 share lost a marginal 0.04% to settle at 4690.16 while the NASI nudged upwards by 0.04% to close at 158.45 points at the end of today’s session. Equity turnover made a hefty rise of 502.38% to close at KES 3.320Bn, which could have been buoyed by a large block of trade passed in the market. Shareholders’ wealth also expanded by a marginal 0.04% to close at KES 2.218Tn.

The gold rush in the telecommunication industry took a notch higher as the turf war on market dominance continues to take over parliament and regulators’ discussions. Safaricom’s M-Pesa and Standard Chartered Bank (NSE: SCBK) signed a pact which is set to allow merchants to transfer a maximum of KES 50 Million per transaction which can be withdrawn by the recipient immediately.

Airtel Kenya, on the other hand, has entered into a partnership with Pan Africa Life Insurance (NSE: PAFR) and Micro Ensure to offer free medical insurance pegged on their monthly airtime top up. The insurance is set to cover both outpatient and inpatient with a minimum of KES 10,000 and over KES 250,000 for life and accident cover depending on the monthly airtime usage. This product targets all their current subscribers and the 12.6 Million people working in the informal sector who could be uninsured. The battle for the telecom market pie stiffens as unfavourable market conditions persist thrusting Safaricom Ltd downwards by 9% in three months to KES 15.70.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most traded stock for the day accounting for 64.22% of the total value traded. Safaricom Ltd (NSE: SCOM) came in second accounting for 10.79% of the days traded value.

Trans-century Ltd (NSE: TCL), soared by 8.59% to KES 15.80 as investors cashed in on the marginal gains registered on the stock. Kapchorua Tea Co. Ltd (NSE: KAPC) posted a 7.34% improvement to KES 190.00, closing as the day’s second best gainer.

Carbacid Investments Ltd (NSE: CARB) was the major laggard of the day, plummeting by 5.06% to KES 16.90.

Housing Finance Co. Kenya Ltd (NSE: HFCK) trailed behind losing ground by 4.72% to KES 25.25.

Foreign Investor Participation

Foreign investor participation declined during Wednesday’s trading session accounting for 47.59% of total turnover against 52.41% local participation. Investors’ engaged in distributive activities; resulting in net outflows worth KES 876.72Mn compared to net inflows worth KES 5.83Mn on Tuesday.

Foreign investors accounted for 47.59% of the NSE turnover as compared to 52.41% on Tuesday.

Investors were dominant on the selling front, resulting in net outflows worth KES 876.72Mn relative to net inflows worth KES 5.83Mn on Tuesday.

Equity Group Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 1.07Bn to account for 32.26% of total market activity and 67.79% of foreign activity whilst Safaricom Limited (NSE: SCOM) followed with a turnover of KES 240.17Mn representing 7.23% of total market activity and 15.20% of foreign activity.

Kenol Kobil Limited (NSE: KENO) posted the day’s highest inflows of KES 3.95Mn whilst Equity Group Holdings Limited (NSE: EQTY) posted the day’s highest outflows worth KES 885.16Mn.