Kenyan Shilling Opens Week on Stable Note

The Kenyan Shilling firmed against major peers at the beginning of the week as corporate demand for foreign currency diminished. The USDKES exchange rate gained marginally by 0.05% to 105.29. Intervention from the regulator last week provided substantial support to the KES, as sales of dollars helped to meet demand from market players. We expect the KES to trade on stable grounds against the dollar this week as demand is expected to remain balanced against supply, whilst the tax payment deadline later in the week is also anticipated to buffer the local unit. Meanwhile, the dollar hit an almost three-week low against a basket of major currencies, ahead of this week’s Federal Reserve meeting, as Fed rate hike expectations have been pushed back.

Foreign Investor Participation

The week started off with active participation from foreigners which accounted for 61.59% of total turnover against 38.41% of local participation. Investors were keen on the buying end, recording net inflows worth KES 22.31Mn, relative to KES 63.30Mn the previous day.

Foreign investors accounted for 61.59% of the NSE turnover as compared to 54.40% on Friday.

Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 22.31Mn.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 65.93Mn to account for 16.55% of total market activity and 26.88% of foreign investor activity, followed by East African Breweries Limited (NSE: EABL) with a turnover of KES 36.12Mn representing 9.07% of total market activity and 14.72%% of foreign investor activity.

Jubilee Holdings Limited (NSE: JUB) posted the day’s highest net inflows worth KES 26.40Mn and the day’s highest net outflows, worth KES 23.44Mn were posted by Kenya Commercial Bank Limited (NSE: KCB)