Kenyan Shilling Steady Amid Scant Dollar Demand

The Kenyan Shilling traded with steady momentum against major international peers during a relatively quiet trading session on Tuesday. Subdued dollar demand from corporates coupled with banks holding Shilling positions in order to meet mid-month cash reserve requirements backed the Kenyan Shilling. Meanwhile, the dollar held steady globally despite weak retail sales data which rose by 0.2% in August, compared to expectations for an increase of 0.3%. The USDKES closed the trading day at 105.38, marginally weakening by 0.08%. On the other hand, the Euro (EURO) took a slight beating against the USD, as downbeat data on German economics dampened sentiment, whilst markets awaited the Federal Reserve’s highly-anticipated policy statement due on Thursday.

Foreign Investor Participation

Foreign participation wavered slightly during Tuesday’s trading session as fund managers held positions in anticipation of Federal Reserve’s policy statement which is set to be released on Thursday. Foreigners accounted for 54.58% of total turnover against 45.42% of local participation. Investors increased accumulative activities, recording net inflows worth KES 138.91Mn, relative to KES 22.31Mn the previous day.

Foreign investors accounted for 54.58% of the NSE turnover as compared to 61.59% on Monday.

Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 138.91Mn.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 122.90Mn to account for 20.28% of total market activity and 37.16% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) with a turnover of KES 94.25Mn representing 15.55% of total market activity and 28.50% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 72.74Mn and the day’s highest net outflows, worth KES 1.26Mn were posted by Standard Chartered Bank Limited (NSE: SCBK)