Monetary Policy Committee Retains Central Bank Rate At 11.50%

By / Published September 23, 2015 | 8:35 am

The Kenyan Shilling (KES) eased by 0.50% to settle at 105.63 (12:30pm GMT) against the US Dollar, as local importers sought Dollars to settle month end obligations. On the other hand, gains were posted against the Sterling Pound (GBP) and Euro (EUR), respectively. A cautious attitude prevailed amongst traders as the Monetary Policy Committee (MPC) meeting took place today where the committee decided to retain the Central Bank Rate steady at 11.50%, whilst tight liquidity in the money market limited further losses.

On the regional front, the KES recorded gains of 1.96% against the South African Rand (ZAR), even though the ZAR reversed earlier losses against the dollar during the day’s trade, as investors held their breath ahead of the South African Reserve Bank’s (SARB) interest rates decision after the unit slid over 1% in the previous session.
Foreign Investor Participation

The foreign participation at the local bourse accelerated during Tuesday’s trading session, accounting for 80.24% of total turnover against 19.76% of local participation. Investors remained keen on the buy side, recording net inflows worth KES 28.58Mn, relative to KES 20.70Mn the previous day.

Foreign investors accounted for 80.24% of the NSE turnover as compared to 58.52% on Tuesday.

Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 28.58Mn.

Bamburi Cement Limited (NSE: BAMB) was the day’s highest traded stock, recording a turnover of KES 240.47Mn to account for 48.01% of total market activity and 59.83% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) with a turnover of KES 128.98Mn representing 25.75% of total market activity and 32.09% of foreign investor activity.

Equity Holdings Limited (NSE: EQTY) posted the day’s highest net inflows worth KES 9.30Mn and the day’s highest net outflows, worth KES 4.01Mn were posted by Kenya Airways Limited (NSE: KQ).