Kenyan Shilling Treads Turbulent Waters

Currency

The Kenyan Shilling (KES) continued to face some headwinds during Tuesday’s trading session, posting losses against five out of seven currency pairs in our basket of currencies. Against international peers, the local unit shed 0.38% and 0.04% against the Euro (EUR) and (USD), respectively, but edged up by 0.88% against the Sterling Pound (GBP). The US Dollar edged higher against the other major currencies, bolstered by the release of positive U.S. data which boosted optimism over the strength of the economy. Meanwhile, the Sterling Pound recouped gains following a weak few days as it was backed by data showing that the rate of inflation in the U.K. slowed in April for the first time since September 2015. On the regional front, the local unit posted a strong gain against the South African Rand (ZAR) – as mounting political tensions appear to have taken their toll on the rand following news that finance Minister Pravin Gordhan is set to be arrested in connection with the South African Revenue Service rogue unit.

Foreign Investor Participation

The foreign investor participation mellowed during Tuesday’s trading session, accounting for 43.93% of total turnover against 56.07% of local participation. Accumulative activities were at the fore-front, resulting in net inflows worth KES 1.17Mn.

Foreign investors accounted for 43.93% of the total NSE turnover as compared to 45.94% on Monday. Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 69.13Mn to account for 27.43% of total market activity and 62.43% of foreign investor activity, followed by Scangroup Limited (NSE: SCAN) which recorded a turnover of KES 1.18Mn representing 0.68% of total market activity and 1.55% of foreign investor activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest net inflows worth KES 7.93Mn and the day’s highest net outflows, worth KES 6.45Mn, were posted by Cooperative Bank Limited (NSE: COOP).

Article by Genghis Research.