Kenyan Shilling Returns to Gaining Form

The Kenyan shilling returned to gaining form as the week begun to take shape, gaining against all but two of in its basket of currencies. The Kenyan shilling rallied 0.13% against the US Dollar, as demand for dollars by corporates slowed and remittances and tourism saw a small but significant increase. The strong performance by the shilling rallied strong sentiment, although positive data after market close may see the greenback rally early in tomorrow’s trade.

The Kenyan shilling also rallied against the Sterling pound, despite positive data stemming from the United Kingdom in the form of Retail Sales (YOY). On the regional front the shilling shed gains against the Ugandan Shilling (UGX) and Tanzanian Shilling (TZS) by 0.13% and 1.16%- to close the trading day at 35.32 and 2.32(respectively).

Foreign Investor Participation

The foreign participation edged down during Thursday’s trading session, accountingfor84.03% of total turnover against 15.94%of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 9.32Mn relative to KES 24.04Mn net inflows on Wednesday.

Foreign investors accounted for 84.03% of the NSE turnover as compared to 84.30% on Wednesday. Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 9.32Mn.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 13.48Mn to account for 30.28% of total market activity and36.03% of foreign investor activity, followed by Equity Group Holdings Limited (NSE: EQTY)with a turnover of KES94.58Mn representing 21.14% of total market activity and 25.151% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 4.16Mn and the day’s highest net outflows, worth KES 9.54Mn,were posted by Co-operative Bank of Kenya Limited(NSE: KCB).