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).