Shilling Exhibits Strength Against International Peers

Currency

The Kenyan shilling proved strong against international peers, registering gains against the US Dollar and Sterling Pound. The former garnered 0.14% against the US Dollar, despite the dollar holding at 1-month highs verses its own basket of currencies. The greenback was buoyed by optimism over the strength of the US economy, thus causing increased demand for the note. The local currency also gained 0.96% against the Euro, again against the expected effects of data. Eurostat showed that the zone’s unemployment rate fell by 1bps, the lowest rate since August 2011. Although the Kenyan shillings performance could have been caused by slow trading on the home front and vulnerable sentiment on the single currency, as the euro showed a slide back into deflationary pressures in February.

Foreign Investor Participation:

The foreign participation shored up during Tuesday’s trading session, accounting for 48.75% of total turnover against 51.25% of local participation. Sell off activities were unable to offset buy side, resulting in net inflows worth KES 7.38Mn. Foreign investors accounted for 48.75% of the NSE turnover, compared to 57.29% on Monday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 7.38Mn.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 59.05Mn to account for 12.92% of total market activity and 26.50% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) with a turnover of KES 61.38Mn representing 13.43% of total market activity and 27.54% of foreign investor activity.

Diamond Trust Bank Kenya Limited (NSE: DTB) posted the day’s highest net inflows worth KES 20.12Mn and the day’s highest net outflows, worth KES 12.62Mn, Africa Breweries Limited (NSE: EABL).

Originally appeared on Genghis Research.