US Fed Chair Rate Hike Uncertainty Sees Shilling Marginally Advance

Currency

The Kenyan shilling closed Wednesday’s trading session having extended marginal gains against the US Dollar (USD) to close at 101.52 after the US Federal Reserve Bank chair, Janet Yellen, indicated that low oil prices, China’s growth rate uncertainty and global risks justify a more cautious approach when the FOMC wants to extend further tightening on their monetary policy. This is in contrast to prior remarks indicating that there was a possibility of a rate hike as early as next month. The local unit extended the day’s biggest shedding against the Sterling Pound (GBP) by 1.07% to 144.98 and a further 0.38% against the Euro (EUR) to 113.74 tipped forward on account of the Fed chair’s statement.

Foreign Investor Participation

The foreign participation significantly edged up during Wednesday’s trading session, accounting for 75.09% of total turnover against 24.91% of local participation. Sell off activities did not offset buy side, resulting in net inflows worth KES 26.55Mn relative to KES 67.59Mn net inflows on Tuesday.

Foreign investors accounted for 75.09% of the NSE turnover as compared to 53.26% on Tuesday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 26.55Mn.

Bamburi Cement Limited (NSE: BAMB) was the day’s highest traded stock, recording a turnover of KES 189.74Mn to account for 37.02% of total market activity and 49.30% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) with a turnover of KES 103.64Mn representing 20.22% of total market activity and 26.93% of foreign investor activity.

East Africa Breweries Limited (NSE: EABL) posted the day’s highest net inflows worth KES 18.27Mn and the day’s highest net outflows, worth KES 2.71Mn, were posted by Barclays Bank of Kenya Limited (NSE: BBK).

Article by Genghis Research.