Kenyan Shilling Shows Strong Promise

Foreign Investor Participation

The foreign participation shored up during Thursday’s trading session, accounting for 55.14% of total turnover against 44.86% of local participation. Sell off activities were unable to offset buy side, resulting in net inflows worth KES 55.90Mn relative to KES 12.10Mn net outflows on Wednesday.

Foreign investors accounted for 55.14% of the NSE turnover as compared to 92.86% on Wednesday.

Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 55.90Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 45.75Mn to account for 16.54% of total market activity and 30% of foreign investor activity, followed by East African Breweries Limited (NSE: EABL) with a turnover of KES 41.35Mn representing 14.95% of total market activity and 27.11% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 19.69 Mn and the day’s highest net outflows, worth KES 3.60Mn, were posted by NIC Bank Limited (NSE: NIC).

The Kenyan shilling switched to recall gains against all seven of its currencies, in a volatile week that has seen the local currency buck its trend twice. The Kenyan shilling recorded gains against the US Dollar, by 0.28% to 103.09, despite increased demand for the dollar and positive data; through initial jobs claim. U.S crude oil inventories that registered below the forecast proved beneficial to emerging market currencies. The local currency also rallied against the Sterling Pound, by 0.65% to 157.33, as the Bank of England MPC voted eight-to-one in favour of postponing the rate hike to a later date. On the regional front, previous gains by region-comparable were erased, as the shilling garnered o.41% and 0.17% to 21.08 and 35.71, against the Tanzanian- and Ugandan shilling (respectively).