USDKES Benefits from Muted Dollar Demand

Currency

The Kenyan Shilling retained a strong footing in the new week, furthering gains all international and regional peers apart from the Euro (EUR). The USDKES edged up the highest level in 10 months posting gains of 0.10% to settle at 100.47 (12:30pm GMT) on Tuesday. The local unit’s strength against the greenback has been attributable to muted dollar demand from importers as well as positive economic data released by the KNBS last week. Kenya’s economic growth accelerated to 5.6% in 2015 from 5.3% in the previous year as earnings from agricultural exports and construction outweighed a slowdown in tourism. Meanwhile, on the regional front, the KES reported the strongest gains against the ZAR – up by 0.81% on Monday as the ZAR continued to lose ground against major currencies. Economists say the rand has been affected by a general sell-off of riskier assets due to these concerns.

Foreign Investor Participation

The foreign investors were active at the NSE as the week began, accounting for 60.89% of total turnover against 39.11% of local participation. Accumulative activities took center-stage, resulting in net inflows worth KES 37.26Mn.

Foreign investors accounted for 60.89% of the total NSE turnover as compared to 56.50% on Friday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 37.26Mn. East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of

KES 128.81Mn to account for 28.05% of total market activity and 46.06% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) which recorded a turnover of KES 66.45Mn representing 14.47% of total market activity and 23.76% of foreign investor activity.

Safaricom Limited (NSE: SCOM) 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 Kenya Commercial Bank Limited (NSE: KCB).

Article by Genghis Research.