Positive US Retail Data Supports Slight Dollar Upward Movement

Currency

The Kenyan shilling closed Tuesday’s trading on a mixed note against most of its regional and international peers. The local unit marginally shed 0.06% against the US Dollar (USD) to 101.83 bolstered by upbeat US retail sales data posted last week and in anticipation for US manufacturing data set to be released. On the other hand, the shilling advanced against the Euro (EUR) 0.10% following the ECB president, Mario Draghi, testimony to lawmakers outlining the next policy moves; indicating that the ECB will not hesitate to act in March to spur growth in the euro zone and inflation rising from 0.4% back to 2%, raising expectations for further stimulus. On the other hand, the local unit shed 0.03% against the Sterling Pound (GBP) to 147.25 as annual inflation rates for the UK rose to a new one year high on January, supported further by a new opinion poll indicating there is a clear British majority in favour of Britain remaining in the UK.

Foreign Investor Participation

The foreign participation significantly edged up during Tuesday’s trading session, accounting for 74.17% of total turnover against 25.83% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 41.72Mn relative to KES 9.76Mn net inflows on Monday.

Foreign investors accounted for 74.17% of the NSE turnover as compared to 11.54% on Monday.
Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 41.72Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 147.88Mn to account for 29.95% of total market activity and 40.38% of foreign investor activity, followed by Kenya Commercial Bank Limited (NSE: KCB) with a turnover of KES 145.68Mn representing 29.51% of total market activity and 39.78% of foreign investor activity.

The Cooperative Bank of Kenya Limited (NSE: COOP) posted the day’s highest net inflows worth KES 0.62Mn and the day’s highest net outflows, worth KES 28.29Mn, were posted by East Africa Breweries Limited (NSE: EABL).

Research done by Genghis Research.