Shilling Commences Week on a Positive Note

Currency

As the week’s trading commenced, the shilling made gains against all its major international and regional peers. The shilling clawed a marginal 0.08% against the US Dollar (USD) settling at 102.13 as relative stability continued on the pair. Further gains of 0.71% were made against the Sterling Pound (GBP) to 154.70 as anticipation mounted on an impeding statement by the Bank of England (BoE) governor Jay Carney on the likelihood that they would not raise rates in a rush, noting some uncertainty over economic data from the UK.

Further gains of 0.52% were made against the Euro (EUR) to 108.6 with enhanced anticipation thatthe European Central Bank (ECB) would scale ups its Quantitative Easing (QE) programme next month. On the regional front, the shilling advanced by 0.32%, 0.57% and 0.08% against the South African Rand (ZAR), Ugandan Shilling (UGX) and the Tanzanian Shilling (TZS).

Foreign Investor Participation

The foreign participation edged down during Monday’s trading session, accounting for 56.09% of total turnover against 43.91% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 35.94Mn relative to KES 26.15Mn net inflows on Friday. Foreign investors accounted for 56.09% of the NSE turnover as compared to 83.03% on Friday. Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 35.94Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 108.95Mn to account for 29.05% of total market activity and 51.80% of foreign investor activity, followed by Equity Group Holdings Limited (NSE: EQTY) with a turnover of KES 67.56Mn representing 18.01% of total market activity and 32.12% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 13.96Mn and the day’s highest net outflows, worth KES 37.28Mn, were posted by Equity Group Holdings Limited (NSE: EQTY).