Foreign Investor Participation Robust in Thursday Trading Session

Foreign Investor Participation

The foreign investor participation remained robust during Thursday’s trading session, accounting for 58.65% of total turnover against 41.35% of local participation. Distributive activities outweighed accumulative activities, resulting in net outflows worth KES 36.20Mn relative to net inflows worth KES 144.22Mn

Foreign investors accounted for 58.65% of the total NSE turnover compared to 62.49% the previous day.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 54.21Mn to account for 29.32% of total market activity and 49.99% of foreign investor activity, followed by Kenya Commercial Bank Limited (NSE: KCB) which recorded a turnover of KES 20.31Mn representing 10.98% of total market activity and 18.73% of foreign investor activity.

Britam Investments Limited (NSE: BRIT) posted the day’s highest net inflows worth KES 1.00 Mn and the day’s highest net outflows, worth KES 19.99Mn, were posted by Kenya Commercial Bank Limited (NSE: KCB).

Currency

KES Trading on Firm Ground

The Kenyan Shilling (KES) firmed during Thursday’s trading session, boosted my positive sentiments flared in the market after the Central Bank of Kenya cutback its current account deficit forecast for this year. The USDKES garnered 0.20%, settling at 100.67 (12:30pm GMT) as commercial banks sold Dollars in the money market. We expect the USDKES to close the week on a firm note as dollar demand from importers is also anticipated to ease. Meanwhile, the USD remained moderately lower against the other major currencies on Thursday, even after data showed that U.S. jobless claims fell more than expected last week and that U.S. durable goods orders rose more than forecast in April. On the regional front, the local unit pared gains against all regional peers tracked in our basket of currencies. The strong gain 0f-0.85% was recorded against the South African Rand (ZAR).

Article by Genghis Research.