Shilling Gains on Pound as Debate on Referendum Gears up in Britain

By Soko Directory Team / February 23, 2016

Barclays Africa Expect the Shilling to Hit 106 Against USD by End of 2018

Currency

The Kenyan shilling commenced the week’s trading on a mixed footing, having gained against only two of its international and regional peers. The most significant gain was registered against the Sterling Pound (GBP) by 0.68% to 145.29 following Brexit concerns being heightened following the decision by London Mayor Boris Johnson to back a campaign for Britain to exit the European Union, marking a significant blow to Prime Minister David Cameron’s campaign on leaving Britain within the union following his appeal over the weekend ot his conservative members. However, the local unit shed against the Euro (EUR) by 0.13% to 113.01 though this is set to come under pressure post euro zone private sector activity slowing in February underlying expectations for more easing from the ECB during their upcoming March 10th meet. The shilling also shed 0.02% against the US Dollar (USD) to level off at 101.81 supported by upbeat inflation data lending support to the greenback.

Foreign Investor Participation

The foreign participation marginally declined during Monday’s trading session, accounting for 52.14% of total turnover against 47.86% of local participation. Sell off activities did not offset buy side, resulting in net inflows worth KES 3.14Mn relative to KES 4.28Mn net inflows on Friday.

Foreign investors accounted for 52.14% of the NSE turnover as compared to 56.83% on Friday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 3.14Mn.

East Africa Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 120.33Mn to account for 41.58% of total market activity and 79.74% of foreign investor activity, followed by Barclays Bank of Kenya (NSE: BBK) with a turnover of KES 19.22Mn representing 6.64% of total market activity and 12.74% of foreign investor activity.

East Africa Breweries Limited (NSE: EABL) posted the day’s highest net inflows worth KES 25.31Mn and the day’s highest net outflows, worth KES 19.22Mn, were posted by Barclays Bank of Kenya (NSE: BBK) .

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