Shilling Unable to Capitalize on Poor Sentiment and Data

Currency

The Kenyan shilling was unable to capitalise on dwindling market sentiment and poor economic data, as it shed against five of the seven international and regional peers. The shilling furthered gains against the US Dollar by 0.14% to close trading at 101.78, as investors focused on Federal Reserve Chair Janet Yellen’s testimony; before the House Financial Services Committee, for indications on future rate hikes. The dollar trimmed gains against other major currencies, despite releasing positive crude oil data. Across the pond, the shilling registered significant losses against the Sterling pound and the Euro, by 0.85% and 0.24% to 148.15 and 114.61 (respectively); showing the shilling was too weak to capitalise on poor economic data. The pound recorded a volatile trading day as overall market sentiment- stemmed from the previous day- was capped by less-than expected manufacturing production.

Foreign Investor Participation

The foreign participation shored up during Wednesday’s trading session, accounting for 46.87% of total turnover against 53.13% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 8.27Mn relative to KES 70.47Mn net outflows on Tuesday. Foreign investors accounted for 46.87% of the NSE turnover as compared to 75.04% on Tuesday.

Foreign investors engaged in net distribution activities, resulting in net outflows worth KES 70.47Mn. Equity Group Holding (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 35.29Mn to account for 11.64% of total market activity and 24.83% of foreign investor activity, followed by Nation Media Group (NSE: NMG) with a turnover of KES 28.15Mn representing 9.28% of total market activity and 19.81% of foreign investor

Nation Media Group (NSE: NMG) posted the day’s highest net inflows worth KES 28.15Mn and the day’s highest net outflows, worth KES 20.92Mn, were posted by Safaricom Limited (NSE: SCOM).

Article by Genghis Research.