Kenyan Shilling To Trade In Tight Range Ahead Of MPC Meeting

The Kenyan Shilling (KES) recorded gains against all international peers during Monday’s trading session. Traders noted that tight liquidity in the money markets is currently keeping the Kenyan Shilling ashore. The USDKES exchange rate gained 0.02% in today’s trading, settling at 105.11, nonetheless, dollar demand from the energy and telecommunication sectors may bring on pressures over the course of the week.

Meanwhile, the local unit locked in gains of 0.73% and 0.56% against the Sterling Pound and the Euro, respectively. The Euro softened against most peers after the Federal Reserve’s decision to hold rates steady, as central bankers cited risks to the global economy.

We forecast the KES to trade in a tight range this week as the MPC meets to review its current monetary policy.

Foreign Investor Participation

The foreign presence was strong at the local bourse at the start of the week, with foreigners accounting for 59.52% of total turnover against 41.49% of local participation. Investors increased buying activities, recording net inflows worth KES 20.70Mn, relative to KES 3.76Mn the previous day.

Foreign investors accounted for 58.52% of the NSE turnover as compared to 69.48% on Friday.

Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 20.70Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 157.07Mn to account for 26.41% of total market activity and 45.13% of foreign investor activity, followed by Kenya Commercial Bank Limited (NSE: KCB) with a turnover of KES 33.93Mn representing 15.46% of total market activity and 26.42% of foreign investor activity.

Safaricom Limited (NSE: SCOM)) posted the day’s highest net inflows worth KES 13.52Mn and the day’s highest net outflows, worth KES 2.19Mn were posted by Sasini Limited (NSE: SASN)