Yuan Devaluation Adding Pressure on Emerging Markets

By / Published August 11, 2015 | 3:40 pm



Barclays Africa Expect the Shilling to Hit 106 Against USD by End of 2018

The Kenyan Shilling (KES) extended gains against the US Dollar (USD) by 0.23% to 100.88 as the US data released indicated that non-farm productivity was below expectations, while US unit labour costs rose more than expected. The shilling extended further weakening against the Euro (EUR) by 0.57% to 111.53 as creditors reached a new agreement with the Greek government following further rounds of negotiations. Further gains were registered against the South African Rand (ZAR) by 0.80% to settle at 7.93 as emerging markets faced negative sentiments following the devaluation of the Chinese Yuan.

Kenya Targets Sovereign Sukuk

As the week begun to take shape the local market continued its marginal climb against adverse market conditions, closing the trading day with rewarding figures for bullish investors. The Nairobi Stock Exchange rallied, with the NSE-20 climbing 0.80% to 4519.63 and the NSE All Share Index garnered 0.76% to close the trading day at 154.91. Market capitalisation followed suit as it gained 0.77% to close the trading day at KES. 2169Bn and equity turnover increased 96.02% from the previous day trading as it registered KES. 478Mn.

Although 2014 was a landmark year for sovereign sukuks, with non-Islamic countries (such as the UK, Hong Kong and South Africa) participating in the KES. 10.7 trillion total sovereign sukuk outstanding (as of May 2014); eight other countries expressing their intentions emphasised the potential size, depth and liquidity of the fairly adolescent market.

Kenya is amongst these countries aiming to benefit from investors familiarity and comfort, created by dollar-pegged Gulf economies, in order to finance infrastructure projects; as African countries only account for 1% of the issues. Moody’s outlook for Sub-Saharan African sovereign credit further illustrates this point, stating that; their stable outlook is based on positive drivers such as growth-supportive infrastructure spending, ongoing reform efforts and a growing middle class.

Despite Fitch dropping it to BB- and Moody maintaining Kenya’s rating of B1; corporate firms such as Kurwitu ventures already offer such products.

Equity Market Highlights

East African Breweries Ltd (NSE: EABL) climbed one spot to close as the most traded stock, accounting for 23.14% of the total value traded; as the counter continues to maintain positive sentiment after strong financials. Safaricom Ltd. (NSE: SCOM) was second accounting for 20.86% of the days traded value.

Kenya Airways Ltd. (NSE: KQ) climbed to dominate the top gainers list, scaling 9.09% to KES 6.00. British American Tobacco Kenya Ltd (NSE: BAT) registered a similar 7.34% gain to KES 790.00, curving in as the day’s second best gainer.

Eaagads Ltd. (NSE: EGAD) dropped to claim the day’s top loser, shedding 9.16% to KES 29.75. Sasini Ltd. (NSE: SASN) followed a close second as it retreated by 6.83% to KES 15.00.

Foreign Investor Participation

Foreign investor participation was robust during Tuesday’s trading session accounting for 63.63 % of total turnover against 36.37% local participation. Foreign participants were dominant on the accumulative front; resulting in net inflows worth KES 174.27Mn compared to net inflows worth KES 12.82Mn on Monday.

Foreign investors accounted for 63.63% of the NSE turnover as compared to 77.71% on Monday.

Investors engaged in accumulative activities, resulting in net inflows worth KES 174.27Mn relative to net inflows worth KES 12.82Mn on Monday.

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 225.64Mn to account for 23.06% of total market activity and 36.24% of foreign activity Safaricom Limited (NSE: SCOM) followed with a turnover of KES 14.61Mn representing 14.68% of total market activity and 23.06% of foreign activity.

British American Tobacco (NSE: BAT) posted the day’s highest inflows worth KES 92.86Mn whilst Athi River Mining (NSE: ARM) posted the day’s highest outflows worth KES 1.17Mn.

 






More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2024
  • January 2024 (238)
  • February 2024 (227)
  • March 2024 (190)
  • April 2024 (133)
  • May 2024 (157)
  • June 2024 (65)
  • 2023
  • January 2023 (182)
  • February 2023 (203)
  • March 2023 (322)
  • April 2023 (298)
  • May 2023 (268)
  • June 2023 (214)
  • July 2023 (212)
  • August 2023 (257)
  • September 2023 (237)
  • October 2023 (266)
  • November 2023 (286)
  • December 2023 (177)
  • 2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (358)
  • April 2022 (292)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (232)
  • December 2022 (167)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (272)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950