Shilling Continues Stellar Performance

Currency

As the week took shape the shilling performed well gaining against all but one of the four international currencies; the Sterling Pound, Euro, US Dollar and South African rand. The Kenyan shilling shed against the greenback by 0.07% to 102.20; as positive US data (Gross Domestic Product of 2.1%, QoQ) reported after markets had closed the previous day resulted in the dollar rallying to fresh 8-month peaks against its own basket of currencies.

The local currency garnered 0.44% against the Euro to close trading at 108.24; the latter was heavily affected by a series of terrorist attacks and heightened geopolitical instability that dampened investor’s confidence (reverting them to the dollar). On the local front the shilling weakened against both the Tanzanian and Ugandan shilling, by 0.4% and 0.2% to 21.16 and 32.95 (respectively).

Foreign Investor Participation

The foreign participation edged down during Wednesday’s trading session, accounting for 43.90% of total turnover against 56.10% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 123.51Mn relative to KES 141.64Mn net outflows on Tuesday.

Foreign investors accounted for 43.90% of the NSE turnover as compared to 70.61% on Monday. Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 123.51Mn.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 102.30Mn to account for 29.38% of total market activity and 66.92% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) with a turnover of KES 25.27Mn representing 7.26% of total market activity and 16.53% of foreign investor activity.

KenolKobil Limited (NSE: KENO) posted the day’s highest net inflows worth KES 9.082Mn and the day’s highest net outflows, worth KES 96.28Mn, were posted by Kenya Commercial Bank Limited (NSE: KCB).