Kenyan Shilling Steady On The Back Of Tight Liquidity

The Kenyan Shilling (KES) remained relatively steady against the US Dollar (USD) during Thursday’s trading session, as importer demand for dollars was balanced with tight liquidity in the money market. Subsequently, the USDKES exchange rate closed at 105.56 (12:30pm GMT), marginally weaker by 0.03% relative to the previous day. On the other hand, the KES gained 0.05% to the Sterling Pound (GBP), but weakened by 0.22% against the Euro (EUR).

The single unit currency (EUR) pinned to gains against the USD today, having rallied after the head of the European Central Bank downplayed the need for further monetary stimulus any time soon. The local unit outperformed regional peers with the strongest gain posted against the Rand (ZAR). A weak outlook on South Africa’s economy weighed on the ZAR, as the Reserve Bank kept its benchmark repo rate unchanged, citing contractions in agriculture, mining and manufacturing.

Foreign Investor Participation

The foreign participation was little changed during Thursday’s trading session, accounting for 66.03% of total turnover against 33.97% of local participation. Buy side activities offset sell offs, resulting in net inflows worth KES 35.96Mn, relative to KES 39.62Mn the previous day.

Foreign investors accounted for 66.03% of the NSE turnover as compared to 62.02% on Wednesday.

Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 35.96Mn. Equity Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 102.54Mn to account for 33.51% of total market activity and 50.75% of foreign investor activity, followed by Kenya Commercial Bank Limited (NSE: KCB) with a turnover of KES 59.37Mn representing 19.40% of total market activity and 29.38% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 11.45Mn and the day’s highest net outflows, worth KES 462,033 were posted by Kenya Airways Limited (NSE: KQ).