Currency
The Kenyan shilling performed better as compared to the previous day, making advances against all but one of its major regional and international currency peers. The local currency advanced by 0.18% against the US Dollar to close flat at 102; as the former was propped up by continued inflows for the tax free infrastructure bond and reduced corporate demand as they close their books for end year. Further gains were registered against the Euro by 0.54% to 152.99, as the Bank of England looks to hold off on raising rates following UK factory output decline in October, curbing an optimistic outlook on UK growth.
On the regional front, the shilling advanced gains against the South African Rand (ZAR) by 1.21% to a new low of 6.97 in 2015 as South Africa portfolio investments jumped to their biggest quarterly outflows on record, with 3rd quarter 2015 outflows at ZAR 24.2 Bn from ZAR 10Bn in the 2nd quarter 2015. Furthermore, a worsening trade outlook, credit rating downgrades and pressure from the FOMC rate hike add further pressure on the ZAR.
Foreign Investor Participation
The foreign participation declined during Tuesday’s trading session, accounting for 84.21% of total turnover against 15.79% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 13.79Mn relative to KES 20.29 Mn net inflows on Monday.
Foreign investors accounted for 84.21% of the NSE turnover as compared to 94.91% on Monday. Foreign investors engaged in net accumulative activities, resulting in net outflows worth KES 13.79Mn.
East Africa Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 254.45Mn to account for 31.71% of total market activity and 37.66% of foreign investor activity, followed by Equity Group Holdings Limited (NSE: EQTY) with a turnover of KES 173.84Mn representing 21.66% of total market activity and 25.73% of foreign investor activity.
Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 7.17Mn and the day’s highest net outflows, worth KES 32.91Mn, were posted by East Africa Breweries Limited (NSE: EABL).