Kenyan Shilling Makes Gains Against Basket of Currencies

Tuesday was marked by the Kenyan Shilling making gains against a basket of currencies with the notable exception being the Great British Pound which appreciated by 0.37% to 162.63 (1.30pm GMT) against the Kenyan Shilling. The Kenyan shilling strengthened by 0.57% against the US dollar as end month dollar demand from importers waned. The gains were the largest made by the shilling against the US dollar (USD) since August 3rd and ended the longest streak of losses since March 11th.

In addition, the continuing mop up of excess liquidity by the local monetary authority through the issue of KES16Bn worth of securities, may have also contributed to the strengthening of the local currency. The largest gains of the day for the Kenyan Shilling were made against the Tanzanian shilling and the Ugandan Shilling with the KESTZS at 20.60 from 20.33 the previous day and the KESUGX at 34.89 from 34.59 the previous day, a gain of 1.34% and 0.87% respectively. CBK’s governor was to meet with the CEO’s of commercial banks, with the weakening Kenya Shilling top on agenda.

Foreign Investor Participation

Foreign investors, in a reversal from the previous day, accounted for a little less than half of the day’s trading with participation at 47.48 % of total turnover against 52.52% local participation. Foreign investors ended the day on the buy side recording net inflows worth KES 90.87Mn, substantially lower than the net inflows of 1.015Bn seen the previous day.

Foreign investors accounted for 47.48% of the NSE turnover as compared to 53.14% on Monday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 90.87Mn.

Kenya commercial bank was the day’s highest traded stock, recording a turnover of KES 95.04Mn to account for 19.97% of total market activity and 42.05% of foreign investor activity, followed by Athi River Mining Ltd (NSE: ARM) with a turnover of KES 26.99Mn representing 5.67% of total market activity and 11.94% of foreign investor activity.

Liberty Kenya Holdings (NSE: CFCI) posted the day’s highest net inflows worth KES 23.1Mn and the day’s highest net outflows, worth KES 1.39Mn were posted by Kenya Commercial Bank Ltd (NSE: KCB)