Kenyan Shilling Throws Up a Mixed Bag

End of the week saw a continuation in marginal strengthening of the Kenyan Shilling (KES) against the US dollar (USD), with the USDKES exchange rate at 105.35 (1.30Pm GMT) despite the positive economic data (PPI) from the US. The local treasury began to offer KES 30Bn in the form of one year bonds which is likely to aid in stabilising or further strengthening the shilling.

The Kenyan shilling carried this positive form against its peers with the exceptions being the Euro (EUR) and the South African Rand (ZAR) which appreciated, by 0.43% and 2.21%, against the shilling with the EURKES at 118.58 and the ZARKES at 7.78. The significant depreciation of the Kenyan shilling against the South African Rand comes on the back of better South Africa which also saw it make gains against the USD.

Foreign Investor Participation

Foreign participation mellowed at the end of the week with foreigners accounting for 54.40% of total turnover against 45.60% of local participation. Investors remained keen on the buying end recording net inflows worth KES 62.3Mn, relative to KES 61.12Mn the previous day.

Foreign investors accounted for 54.40% of the NSE turnover as compared to 71.87% on Thursday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 62.30Mn.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 57.56Mn to account for 20.02% of total market activity and 36.81% of foreign investor activity, followed by Safaricom Ltd (NSE: SCOM) with a turnover of KES 36.15Mn representing 12.58% of total market activity and 23.12% of foreign investor activity.

East African Breweries Ltd (NSE: EABL) posted the day’s highest net inflows worth KES 23.81Mn and the day’s highest net outflows, worth KES 495,163 were posted by Kenya Commercial Bank Limited (NSE: KCB)