Kenyan Shilling Wanes against Basket of Currencies

Currency

As the week commenced the shilling failed to begin any significant rallies against its international peers, weakening against all but two of its comparables. The local unit shed a mere 0.05% against the US Dollar to close trading at 101.48; as the pair’s trading session was highly volatile. The Central Bank of Kenya was meeting today, further propping investors’ sentiments on the shilling; the decision to leave Central Bank Rate at 11.5% buoyed the shilling against the greenback.

The shilling furthered losses against the Sterling Pound, by 0.19% to 146.18; despite little data emanating from the economy. The pound dropped points against its own basket of currencies as Ian Duncan Smith (Secretary of State for Work and Pensions and a big voice in the Conservative party) unexpectedly resigned over disagreements on a budget he considered unfair. On the regional front the Kenyan shilling gained against the Tanzanian shilling and shed points against the Ugandan shilling by 1.32% and 0.32% (respectively).

Foreign Investor Participation:

The foreign participation shored up further during Monday’s trading session, accounting for 53.83% of total turnover against 46.17% of local participation. Sell off activities offset buy side, resulting in net outflows worth KES 33.16Mn as compared to net outflows of KES 79.30Mn on Friday.

Foreign investors accounted for 53.83% of the NSE turnover as compared to 70.00% on Friday. Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 33.16Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 121.46Mn to account for 26.36% of total market activity and 48.96% of foreign investor activity, followed by Kenya Commercial Bank Limited (NSE: KCB) with a turnover of KES 59.81Mn representing 12.98% of total market activity and 24.11% of foreign investor activity.

Equity Group Holdings (NSE: EQTY) posted the day’s highest net inflows worth KES 11.53Mn and the day’s highest net outflows, worth KES 14.94Mn, were posted by British American Tobacco Limited (NSE: BRIT).