Shilling Maintains Trend Amidst Market Volatility

The Kenyan shilling furthered gains registered in the previous trading period against five of its international and regional peers, recording one of the best starts to the week this calendar year. The shilling garnered a further 0.02% against the US Dollar, to close trading at 100.78; as the latter trimmed gains amidst mixed economic reports. The greenback increased volatility after nonfarm employment rose less than expected (for April) and the US trade deficit narrowed more than anticipated in March.

The shilling rallied against the Sterling pound and the Euro, by 0.18% and 0.14% (respectively); as both currencies were weighed down by weaker than expected PMIs. With the European Central Bank economic bulletin, the FOMC member speeches and the housing price index (for the pound) to follow in the coming two days, we expect an uptick in volatility for the Kenyan shilling.

Foreign Investor Participation

The foreign investors remained dominant at the NSE, accounting for 79.72% of total turnover against 20.28% of local participation. Accumulative activities took center-stage, resulting in net inflows worth KES 42.27Mn relative to net outflows worth KES 8.64Mn on Tuesday.

Foreign investors accounted for 79.72% of the total NSE turnover as compared to 77.88% on Tuesday. Foreign investors engaged in net selling activities, resulting in net inflows worth KES 42.27Mn.

Equity Group Holding (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 201.42Mn to account for 39.35% of total market activity and 49.36% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) which recorded a turnover of KES 128.25Mn representing 25.06% of total market activity and 31.43% of foreign investor activity.

Kenya Commercial Bank Limited (NSE: KCB) posted the day’s highest net inflows worth KES 23.44Mn and the day’s highest net outflows, worth KES 9.27Mn, were posted by Safaricom Limited (NSE: SCOM).

Article by Genghis Research.