USDKES Steady, Despite High Dollar Demand

Foreign Investor Participation

The foreign investor participation improved during Wednesday’s trading session, accounting for 62.49% of total turnover against 37.51% of local participation. Accumulative activities were at the fore-front, resulting in net inflows worth KES 144.22Mn relative to net inflows worth KES 126.71Mn.

Foreign investors accounted for 62.49% of the total NSE turnover compared to 57.40% the previous day. Equity Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 212.83Mn to account for 25.10% of total market activity and 40.17% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) which recorded a turnover of KES 108.25Mn representing 12.77% of total market activity and 20.43% of foreign investor activity.

Equity Holdings Limited (NSE: EQTY) posted the day’s highest net inflows worth KES 152.94Mn and the day’s highest net outflows, worth KES 10.70Mn, were posted by East African Breweries Limited (NSE:EABL).

Currency

The Kenyan Shilling (KES) displayed a slightly mixed performance as the week took shape, but all in all held steady against most peers. The USDKES held ground garnering 0.06% to 100.87 (12:30pm GMT) despite high dollar demand as a result of traditional month end demand from importers. Across the pond, the dollar dipped against the other major currencies on Wednesday, but still remained supported near two-month highs as expectations for a June rate hike in the U.S. continued to support the greenback. Meanwhile, on the regional front, the KES recorded the strong dip against the South African Rand (ZAR) – contracting by 0.65%, whilst the strongest gain was reported against the Ugandan Shilling.

Article by Genghis Research.