Currency
The Kenyan Shilling (KES) was relatively indifferent during the first trading session of the New Year, showing insignificant movement against international peers whilst marginal strengthening was posted against two regional peers. The USDKES posted marginal weakening of 0.06%, closing the day’s trading session at 102.29 (12:30pmGMT), nonetheless, the USDKES is expected to face pressures next week, from growing dollar demand as business’s resumes following the Christmas and New Year holidays. Meanwhile, on the regional front, the ZARKES exchange rate edged up by 1.92% – as the Rand (ZAR) began 2016 on a bitter note after an economic survey revealed that the currency was the third worst performing currency globally in 2015; posting a depreciation of just over 26%.
Foreign Investor Participation
Foreign participants returned to the market with good presence on the first trading session of 2016 – accounting for 53.99% of total amid modest turnover NSE Turnover, whilst local participants accounted for the remaining 47.01%%. Selling activities overweighed accumulation levels, resulting in net outflows worth KES 1.18Mn relative to KES 15.48Mn net outflows last week Wednesday.
Foreign investors accounted for 44.13% of the NSE turnover as compared to 49.01% last week Wednesday. Foreign investors engaged in distributive activities, resulting in net outflows worth KES 1.18Mn.
Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 52.48Mn to account for 30.93% of total market activity and 57.30% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) which posted a turnover of KES 19.74Mn representing 11.64% of total market activity and 21.56% of foreign investor activity.
CFC Stanbic Bank Limited (NSE: CFC) posted the day’s highest net inflows worth KES 2.30Mn and the day’s highest net outflows, worth KES 2.50Mn, were posted by Equity Holdings Limited (NSE: EQTY).