Kenyan Shilling Begins Week Trading on a Positive Note

Secondary Market: Secondary market trading was mellow at the beginning of the week as investors reviewed market conditions before taking positions. Bond turnover tapered by 82% to KES 402.80 million with a sum of 8 bond deals.

The MPC meeting is scheduled to take place today – we expect the CBK to hold the CBR steady at 11.50% in order to curb interest rate volatility in the market.

Money Market: The shilling began the week’s trading on a positive note, recording gains against all of its international peers, apart from the Ugandan Shilling and Indian Rupee; in which the former shed 0.32% and 0.25% (respectively). The local currency rallied against the US Dollar by 0.06% to close the trading session at 102.33.

Meanwhile, liquidity in the money market remained relatively robust.

Upcoming Auctions

• 18th November 2015 – KES 4.0Bn 182-day T-bills & KES 4.0Bn 364-day T-bills

• 19th November 2015 – KES 4.0Bn 91-day T-bills LIBOR Rates