Money

Mixed Results from Kenyan Shilling Internationally and Regionally

BY · October 13, 2015 07:10 am

As the week begun to take shape the Kenyan shilling lost shape, shedding points against significant currency comparable; both regional and international. The Kenyan shilling dropped 0.10% against the US Dollar, as the pair witnessed high volatility in the opening hours; however, by midday the market reduced to a more familiar Monday trading session.

The Central Bank of Kenya entered the market, offering KES 7Bn worth of securities; thus we expect to see a favourable effect on the shilling, in the days to follow. Across the pond, the shilling rallied against the Sterling pound by 2.98%, ahead of the much anticipated data on the Consumer Price Index (YOY) from the latter; to be posted tomorrow. On the regional front the shilling weakened against the Ugandan shilling, by 0.27% to 35.63, to erase gains made late last week; however, the former continued a strong run against the Tanzanian shilling to garner a further 0.52% and close the trading day at 21.21.

Foreign Investor Participation

The foreign participation decreased during Monday’s trading session, accounting for 74.41% of total turnover against 25.53% of local participation. Sell off activities were unable to offset buy side, resulting in net inflows worth KES 48.48Mn relative to KES 55.90Mn net outflows on Friday.

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Foreign investors accounted for 74.41% of the NSE turnover as compared to 75.33% on Monday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 48.48Mn.

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 115.97Mn to account for 21.29% of total market activity and 28.61% of foreign investor activity, followed by Equity Group Holding Limited (NSE: EQTY) with a turnover of KES 99.34Mn representing 18.24% of total market activity and 24.51% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 40.08Mn and the day’s highest net outflows, worth KES 12.57Mn, were posted by Kenya Commercial Bank Limited (NSE: KCB).