Primary Fixed Income Market Foreign Investor Appetite Strengthens Shilling

Wednesday’s trading session saw the Kenyan shilling perform on a mixed reaction against its regional and international peers. The shilling extended marginal gains against the US Dollar (USD) by 0.05% to 101.50 as market sentiments awaited the Federal Open Market Committee’s statement in anticipation for a December rate hike. This is further propped by inflows in the Kenya primary fixed income segment due to the high yields. A further 0.24% gain was registered against the Sterling Pound (GBP) with the Bank of England meeting set on the backdrop of an announcement of new interest rates set for November 5th 2015. However, the shilling shed 0.12% against the Euro (EUR) to close at 112.47.

Foreign Investor Participation

The foreign participation marginally declined during Wednesday’s trading session, accounting for 85.81% of total turnover against 14.19% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 60.83Mn relative to KES 40.35Mn net inflows on Tuesday.

Foreign investors accounted for 85.81% of the NSE turnover as compared to 89.19% on Tuesday.

Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 40.35Mn.

Equity Group Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 326.01Mn to account for 33.16% of total market activity and 38.64% of foreign investor activity, followed by British American Tobacco (NSE: BAT) with a turnover of KES 139.48Mn representing 14.19% of total market activity and 16.53% of foreign investor activity.

Cooperative Bank Limited (NSE: COOP) posted the day’s highest net inflows worth KES 4.56Mn and the day’s highest net outflows, worth KES 23.01Mn, were posted by Athi River Mining (NSE: ARM).