Shilling Loses Against Dollar; Gains Against Pound and Euro

Equities

Trading increased today albeit marginally compared to Monday. The three indices lost ground further despite the slight increase in activity. The NASI dropped by 0.56% to close at 145.43 while the NSE-25 share index closed at 4,109.41 points having decreased from 4,143.08 previously. NSE 20 slid 0.87% to end at 3,784.56 points. Market Capitalization fell to KES 2063.30 from KES 2,075.03 billion before whilst equity turnover climbed to KES 0.56 billion due to the rise in volumes traded.

Nairobi Securities Exchange Ltd was among the top gainers owing to news reaching investors that Nairobi Business Ventures (NBV), a leather products retail chain, will be listing by introduction at a price of KES5 a share with effect from next Tuesday, on its Growth and Enterprise Market Segment (GEMS).Longhorn Publishers also gained 1.92% following its acquisition of a 74% stake in East Africa focused legal content publisher. Other counters anticipated to show high activity levels are Crown Berger and Umeme Ltd, with book closure date scheduled for 15th June 2016 for both counters.

Currencies

The Kenya Shilling lost ground slightly against the US dollar but gained some value against the Sterling pound and the Euro. The USDKES decreased by 0.03% after having crossed the 100 level last week. The local currency is steadying as a result of the balancing out of demand from telecommunication companies with inflows from remittances and horticulture exports. We anticipate the shilling to strengthen marginally going forward since the Central Bank will likely intervene to prevent any sliding of the local currency.