Shilling Returns to 101 Mark

Currency

On the second day of trading, green ruled the screen as the Kenyan shilling garnered gains against its peers and returned to the 101-range against the dollar, a feat last seen in mid-December. The shilling rallied 0.19% against the greenback, as investors eagerly awaited job opening data in the US and Central Bank of Kenya mentioned that it would be in the market for KES 4Bn in reverse repos. Across the pond, the local currency recorded gains against the Sterling pound, by 0.42% to close trading at 14.90; as the U.K Office for National Statistics showed that the total trade deficit widened by GBP 10.3Bn. On the regional front, the Kenyan shilling rallied by 0.35% to 6.31, as the South African Rand continued to be weighed by its energy and mining sector that for a substantial component of the GDP and exports to a revaluing China.

Foreign Investor Participation

The foreign participation increased during Tuesday’s trading session, accounting for 75.04% of total turnover against 24.96% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 70.47Mn relative to KES 10.27Mn net outflows on Monday.

Foreign investors accounted for 75.04% of the NSE turnover as compared to 61.30% on Monday. Foreign investors engaged in net distribution activities, resulting in net outflows worth KES 70.47Mn.

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 463.70Mn to account for 36.60% of total market activity and 48.78% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) with a turnover of KES 196.77Mn representing 15.53% of total market activity and 20.70% of foreign investor activity.

Bamburi Cement Limited (NSE: BAMB) posted the day’s highest net inflows worth KES 17.76Mn and the day’s highest net outflows, worth KES 84.43Mn, were posted by East Africa Breweries Limited (NSE: EABL).

By Genghis Research.