Shilling Relatively Stable During Quiet Local Trading Session

Currency

The Kenyan Shilling (KES) was relatively steady during Wednesday’s trading session and displayed strengthening signals against key international peers i.e. the Sterling Pound and Euro which may have been fuelled by a tight liquidity environment in the local money market. However, the USDKES reported marginal changes, edging down by 0.04% to close the day’s trading at 101.13 (12:30pm GMT). Meanwhile, despite hovering near eight-month lows the USD remained broadly higher against major currencies even though news of weak U.S. economic reports streamed into the market. A key report indicated that retail sales fell by 0.3% in March. On the regional front, the KES displayed mixed signals – gains of 0.38% were reported against the South African Rand whilst losing 0.19% to the Ugandan Shilling.

Foreign Investor Participation

The foreign participation in the local market was robust during Wednesday’s trading session, accounting for 74.87% of total turnover against 25.13% of local participation. Net sell off positions outweighed accumulative positions; resulting in net outflows worth KES 22.08Mn relative to net inflows worth KES 18.33Mn on Tuesday.

Foreign investors accounted for 74.87% of the NSE turnover as compared to 77.13% on Tuesday. Foreign investors engaged in distributive activities, resulting in net outflows worth KES 22.08Mn.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 218.10Mn which accounted for 44.98% of total market activity and 60.08% of foreign investor activity, followed by Equity Group Holdings Limited (NSE: EQTY) which recorded a turnover of KES 98.03Mn representing 20.22% of total market activity and 27.00% of foreign investor activity.

Equity Group Holdings Limited (NSE: EQTY) posted the day’s highest net inflows worth KES 2.26Mn and the day’s highest net outflows, worth KES 13.16Mn, were posted by Safaricom Limited (NSE: SCOM).

Article by Genghis Research.