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Kenyan Shilling Strengthens For Third Consecutive Day

BY · August 6, 2015 07:08 am

Kenyan Shilling Strengthens For Third Consecutive Day

The Kenyan Shilling (KES) reported gains across the board during Wednesday’s trading session.

The USDKES strengthened by 0.19% to 101.11 (12:30pm GMT) as traders held positions while the MPC meeting took place. Tight liquidity in the money market has provided good support to the local exchange rate. The strongest gain of 0.97% was reported against the Euro (EUR), whilst regionally the strongest gain was posted against the Rand (ZAR) as the KES garnered 0.94%, although the ZAR has recovered from 14-year lows on the back of a trade surplus.

The Kenyan Market Slips To a Two-and-a-half Year Low

The local bourse took a further turn for the worst as record lows were registered mid-trading week. Both indexes on the Nairobi Stock Exchange dropped, with the NSE-20 plummeting 0.60% to 4317.23 and the NSE All Share Index shedding a further 0.29% to close the trading day at 145.82.

Equity turnover and market capitalisation both illustrated a similar story as the former decreased by 1.42% to KES. 1853Mn- in 1,800 deals- and the latter lost 0.29% to close at KES. 2,041Bn. The market breadth, an unbiased measure of the market performance, showed that conditions slightly improved; as the number of stocks that advanced, 18, rose by 2. However the number of stocks that declined, 20, remained unmatched this week; highlighting that the value declining also outweighed the slight increment.

The market reached a two-and-a-half year low today, of 4317.23 points, as significant participants Safaricom and Kenya Commercial Bank shed value for the third consecutive day; the former stock accounted for 63.85% of the previous day’s trade, while the lender accounted for 23.86% of today’s. The mobile service provider dropped by a further 0.36% to close the trading day at KES. 13.95, thus loosing 9.8% over the past week, while KCB slumped a further 2.13% to close at KES. 46; despite healthy financial results.

Several other companies, however, produced disappointing results; most notoriously Kenya Airways. With the inaugural flight of China Southern Airlines- to Kenya from Guangzhou- the Kenya airline will see an increase in competition on one of its profitable routes; as the China-based airlines targets both passengers and cargo.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) climbed one place to close as the most traded stock, accounting for 41.4% of the total value traded; as investors begun profit taking on positive financial results. Kenya Commercial Bank Ltd. (NSE: KCB) was second accounting for 23.86% of the days traded value.

Sameer Africa Ltd. (NSE: FIRE) climbed to dominate the top gainers list, scaling 8.89% to KES 4.90. E.A Portland Cement Co. Ltd (NSE: PORT) registered a 7.41% gain to KES 58.00, curving in as the day’s second best gainer.

Marshalls (E.A) Ltd. (NSE: MASH) dropped to claim the day’s top loser, shedding 8.40% to KES 12.00. Express Kenya Ltd. (NSE: XPRS) followed a close second as it retreated by 7.07% to KES 4.60.

Foreign Investor Participation

Foreign investor participation remained robust during Wednesday’s trading session accounting for 89.15% of total turnover against 10.85% local participation. Foreign participants reversed positions to engage in distributive activities; resulting in net outflows worth KES 55.36Mn compared to net outflows worth KES 16.63 Mn on Tuesday.

Foreign investors accounted for 89.15% of the NSE turnover as compared to 90.65% on Tuesday. Sell side activities outweighed accumulation, resulting in net outflows worth KES 55.36Mn relative to net outflows worth KES 16.63 Mn on Tuesday.

Equity Group Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 756.17Mn to account for 40.80% of total market activity and 45.77% of foreign activity whilst Kenya Commercial Bank (NSE: KCB) followed with a turnover of KES 417.02 Mn representing 22.20% of total market activity and 25.24% of foreign activity.

Kenya Commercial Bank (NSE: KCB) posted the day’s highest inflows worth KES 3.29Mn whilst Safaricom Limited (NSE: SCOM) posted the day’s highest outflows worth KES 62.53 Mn.

 

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