US Fed Hikes Rate for the First Time in Almost a Decade

Currency

The Kenyan shilling rallied against three of the seven international and regional peers, recording a slightly better performance than the previous trading session. The Kenyan shilling rallied against the US Dollar by 0.02% to 102.33, despite the dollar reaching 2-week highs against its own basket of currencies; due to the much anticipated Fed rate hike. Commenting on the decision, Fed Chair Janet Yellen stated that further rate hikes would be gradual and data dependent. The local currency also garnered significant points against both the Sterling Pound and the Euro, by 0.56%% and 0.65% to 152.83 and 111.08 (respectively). This was despite the pound trimming losses after data released showed that retail sales increased by 1.7% (MoM); soaring past the forecast of 0.5%.

Foreign Investor Participation

The foreign participation significantly increased in comparison to the previous day, accounting for 79.29% of total turnover against 20.71% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 9.04Mn relative to KES 94.73Mn net inflows on Wednesday.

Foreign investors accounted for 79.29% of the NSE turnover as compared to 27.69% on Thursday. Foreign investors engaged in net accumulative activities, resulting in net outflows worth KES 9.04Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 309.73Mn to account for 50.56% of total market activity and 63.77% of foreign investor activity, followed by British American Tobacco Kenya Limited (NSE: BAT) with a turnover of KES 153.95Mn representing 25.13% of total market activity and 31.70% of foreign investor activity.

British American Tobacco Kenya Limited (NSE: BAT) posted the day’s highest net inflows worth KES 8.24Mn and the day’s highest net outflows, worth KES 7.41Mn, were posted by Kenya Power and Lighting Limited (NSE: KPLC).