Shilling Holds Steady Against the Rallying Dollar

Into the second day of trading, the shilling illustrated poor performance; having shed against all but three of its seven international and regional peers. The shilling remained fairly unchanged against the dollar, closing the trading day at 102.13, despite fundamental pressure on the shilling and strong U.S economic data. The United States reported a strong Gross Domestic Product of 2.1% (QoQ), up from 1.5%, and a reducing Goods Trade balance (OCT); thus making the US Fed Rate Hike more likely in their December 15 meeting. Across the pond the shilling produced mixed results as it gained against the Sterling pound and lost against the Euro, by 0.11% and 0.48% to 154.32 and 108.72 (respectively).

Foreign Investor Participation

The foreign participation edged down during Tuesday’s trading session, accounting for 70.61% of total turnover against 29.39% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 141.64Mn relative to KES 35.95Mn net outflows on Monday.

Foreign investors accounted for 70.61% of the NSE turnover as compared to 56.09% on Monday. Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 141.64Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 217.63Mn to account for 23.35% of total market activity and 33.07% of foreign investor activity, followed by British American Tobacco Kenya Limited (NSE: BAT) with a turnover of KES 78.50Mn representing 8.42% of total market activity and 11.93% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 20.90Mn and the day’s highest net outflows, worth KES 121.93Mn, were posted by East Africa Breweries Limited (NSE: EABL).