Feeble Start to the Week for Kenyan Shilling

Currency

The Kenyan Shilling (KES) weakened against all but one peer during the week’s first trading session. The only win for the KES was reported against the US Dollar (USD), where the USDKES exchange rate bagged a 0.10% gain to close the day’s trading at 101.13 (12:30pm GMT).

The gain made by the USDKES may have been attributable to a slight easing of sentiment in the market as the CBK introduced a liquidity support framework for small banks which are currently distressed from turmoil in the financial sector. Meanwhile, the USD also hovered around 6-month lows against major peers with no economic data scheduled to be released throughout the trading session. Furthermore, the greenback’s weakness was also fuelled by sentiments that the Federal Reserve will stick to a cautious approach on hiking interest rates this year amid concerns over the outlook for the global economy.

Meanwhile, the KES pared losses against all regional peers – with the most significant loss of 0.24% posted against the Ugandan Shilling – this was sighted as a result of mounting liquidity in the local money market.

Foreign Investor Participation

The foreign investors were active at the bourse during Monday’s trading session, accounting for 61.09% of total turnover against 38.01% of local participation. Sell off activities were predominant, resulting in net outflows worth KES 9.93Mn relative to net inflows worth KES 21.23Mn on Friday.

Foreign investors accounted for 61.09% of the NSE turnover as compared to 72.39% on Friday. Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 9.93Mn.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 130.96Mn to account for 39.84% of total market activity and 65.33% of foreign investor activity, followed by Equity Group Holding (NSE: EQTY) which recorded a turnover of KES 35.53Mn representing 10.50% of total market activity and 17.18% of foreign investor activity.

Cooperative Bank Limited (NSE: COOP) posted the day’s highest net inflows worth KES 2.56Mn and the day’s highest net outflows, worth KES 5.44Mn, were posted by Diamond Trust Bank Kenya Limited (NSE: DTK).

Article by Genghis Research.