Kenyan Shilling Fairs Well Mid-Week

Currency

The shilling registered gains against the dollar, for the second day in the week, by 0.2% to close trading at 101.38; despite resilience in the former states employment and consumers, which are withstanding a more challenging backdrop than the volatile start to the year. Less-than expected API Weekly crude oil stock was released earlier today, posing negative sentiments on the more significant crude oil inventories; thus we can expect a volatile opening to the currency markets. The shilling returned to record gains against the Euro, by 0.46% to close at 111.45, as the single currency was weighed down by negative sentiment. On the regional front, the shilling posted mixed against the Tanzanian and Ugandan shilling by gaining 0.89% and 0.31% (respectively); as the Ugandan shilling continued to be adversely affected by a slowing in workers remittances, exports and foreign direct investments.

Foreign Investor Participation

The foreign participation shored up during Wednesday’s trading session, accounting for 81.91% of total turnover against 18.09% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 90.14Mn as compared to net outflows of KES 24.47Mn on Tuesday.

Foreign investors accounted for 81.91% of the NSE turnover as compared to 86.13% on Tuesday. Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 90.14Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 319.20Mn to account for 34.83% of total market activity and 42.52% of foreign investor activity, followed by Kenya Commercial Bank Limited (NSE: KCB) with a turnover of KES 166.11Mn representing 18.13% of total market activity and 22.13% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 6.63Mn and the day’s highest net outflows, worth KES 77.60Mn, were posted by East African Breweries Limited (NSE: EABL)