Shilling Stable as CBR and KBRR Left Unchanged by CBK

Currency

Thursday’s trading performance of the shilling was the strongest this week. The Kenyan shilling extended its stable posture against the US Dollar (USD) by 0.02% to 102.39 following the Central Bank of Kenya MPC meeting holding the Central Bank Rate (CBR) and Kenya Bankers Reference Rate (KBRR) unchanged at 11.5% and 9.87%.

Further gains were advanced against the Euro (EU) and the Sterling Pound (GBP) by 0.07% and 0.53% respectively, as the ECB issues a policy statement on its Quantitative Easing programme. However, the shilling weakened against the South African Rand (ZAR) by 0.71% to 6.15 despite inflation figures jumping to 5.2% in December from 4.8% and ahead of the central bank meet slated for next week.

Foreign Investor Participation

The foreign participation edged up during Thursday’s trading session, accounting for 71.99% of total turnover against 28.01% of local participation. Sell off activities did not offset buy side, resulting in net inflows worth KES 17.65Mn relative to KES 57.56Mn net outflows on Tuesday.

Foreign investors accounted for 71.99% of the NSE turnover as compared to 63.24% on Wednesday. Foreign investors engaged in net accumulated activities, resulting in net outflows worth KES 17.65Mn.

Equity Group Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 164.74Mn to account for 32.89% of total market activity and 45.63% of foreign investor activity, followed by Kenya Commercial Bank Limited (NSE: KCB) with a turnover of KES 84.01Mn representing 16.77% of total market activity and 23.30% of foreign investor activity.

Diamond Trust Bank Kenya (NSE: DTK) posted the day’s highest net inflows worth KES 10.55Mn and the day’s highest net outflows, worth KES 8.27Mn, were posted by Safaricom Limited (NSE: SCOM).