Shilling Remains in Range Against Dollar

Currency

The local currency begun the trading week on a positive note furthering gains against six of the seven in its basket of currencies. The shilling rallied a mere 0.05% against the US Dollar, to 102.11, despite the dollar extending gains against its own basket of currencies amid ongoing concerns over the outlook for global growth.

The Kenyan shilling also recorded points against both the British Sterling pound and the Euro, by 0.3% and 0.54% to 147.52 and 113.74 (respectively); as the data from the Euro showed investors’ confidence deteriorated sharply in February. On the regional front, the shilling registered significant gains against the South African rand- by 1.6% to close the trading session at 6.33- despite the rand being supported by a commodity rally.

Foreign Investor Participation

The foreign participation shored up during Monday’s trading session, accounting for 61.30% of total turnover against 39.70% of local participation. Sell off activities offset buy side, resulting in net inflows worth KES 10.27Mn relative to KES 51.01Mn net outflows on Friday. Foreign investors accounted for 61.30% of the NSE turnover as compared to 77.95% on Wednesday.

Foreign investors engaged in net accumulating activities, resulting in net inflows worth KES 10.27Mn. Equity Group Holdings (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 46.97Mn to account for 21.92% of total market activity and 35.76% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) with a turnover of KES 25.01Mn representing 11.67% of total market activity and 19.04% of foreign investor activity.

Housing Finance Kenya Limited (NSE: HFCK) posted the day’s highest net inflows worth KES 8.19Mn and the day’s highest net outflows, worth KES 1.30Mn, were posted by Kenya Commercial Bank Limited (NSE: KCB).

Research by Genghis Capital.