Kenyan Shilling Rides On Speculations Of CBK Intervention

The Kenyan Shilling (KES) gained strength against international and regional peers, with the exception of the South Rand (ZAR) and the Indian Rupee (INR) after the MPC took a dovish monetary policy stance by retaining the CBR at 11.50% yesterday. The KES rode on sentiments that the CBK had intervened in the market by selling small amounts of dollars, whilst tight liquidity in the money market as well as mop-up operations provided some buffer. Subsequently, the USDKES exchange rate marginally strengthened by 0.09% to settle at 105.53 (12:30pm GMT). Meanwhile, the local unit took the strongest stride against the Sterling Pound (GBP) – garnering 1.12% – as the GBP fell to a two-week low against the dollar as investors speculated on further delays in an interest-rate increase by the Bank of England.

Foreign Investor Participation

The foreign participation remained steady during Wednesday’s trading session, accounting for 62.02% of total turnover against 37.98% of local participation. Investors were dominant on the buy side, recording net inflows worth KES 39.62Mn, relative to KES 28.58Mn the previous day.

Foreign investors accounted for 62.02% of the NSE turnover as compared to 80.24% on Tuesday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 39.62Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 109.70Mn to account for 40.17% of total market activity and 64.76% of foreign investor activity, followed by Kenya Power & Lighting Limited (NSE: KPLC) with a turnover of KES 23.38Mn representing 8.56% of total market activity and 13.80% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 25.96Mn and the day’s highest net outflows, worth KES 1.55Mn were posted by East African Breweries Limited (NSE: EABL)