Kenyan Shilling Repeats Stellar Performance

The Kenyan shilling leveraged on gains recorded in the previous two trading periods, registering a rally against all of the currencies in its basket. The local currency garnered a further 0.02% and 0.71% against the US Dollar and Sterling Pound, to close trading at 100.69 and 146.15 (respectively). The pound continued to be weighted down by negative data emanating from the economy, on this occasion service PMI dropped lower than expected; resulting in investors questioning their confidence in one of the economies strongest sectors. The greenback remained supressed following the US Federal rate decision (last week), with investors focusing on nonfarm payrolls to be announced on Friday.

On the regional front, the local currency rallied by a significant 2.52% against the South African Rand, closing the trading day at 6.77. The rand was hindered by waning investors’ confidence, as the Central Bank warned that any ratings downgrade would lead to increased capital outflows, in which the possibility of a downgrade increases as Pretoria continues to delay on reining in its budget deficit.

Foreign Investor Participation

The foreign investors remained dominant at the NSE, accounting for 67.24% of total turnover against 32.76% of local participation. Distributive activities took center-stage, resulting in net outflows worth KES 24.74Mn relative to net inflows worth KES 42.27Mn on Wednesday.

Foreign investors accounted for 67.24% of the total NSE turnover as compared to 79.72% on Friday. Foreign investors engaged in net selling activities, resulting in net outflows worth KES 24.74Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 140.47Mn to account for 33.53% of total market activity and 49.87% of foreign investor activity, followed by ARM Cement Limited (NSE: ARM) which recorded a turnover of KES 81.39Mn representing 19.443% of total market activity and 28.89% of foreign investor activity.

KenolKobil Limited (NSE: KENO) posted the day’s highest net inflows worth KES 10.50Mn and the day’s highest net outflows, worth KES 49.12Mn, were posted by Safaricom Limited (NSE: SCOM).