Shilling Steady on Tuesday

Trading activity dropped on Tuesday as all the market indicators closed in the red. The NSE 20 Share index shed 17.02 points to settle at 3241.92 points while the NASI decreased by 0.97 points to 137.18 points from 138.15 points earlier.

The NSE 25 Share index was down to 3630.58 points from 3648.71 points before. Market capitalization released 4.74% to stand at KES 1906.66 billion from KES 2001.506 billion, whilst equity turnover reduced to KES 0.64 billion from KES 1.01 billion yesterday due to a 47.28% decline in the volume of shares traded.

 Equity Group has announced a freeze in branch expansion as it launched new digital banking services. The NSE-listed bank says new services to be offered through a mobile app will enable its customers to open new accounts conveniently via a mobile device. The app will also enable clients conduct various transactions including loan applications, paying bills, buying and selling shares as well as procuring insurance.

Equity Group CEO James Mwangi said Tuesday that the lender is responding to a rapidly changing consumer lifestyle landscape that shows the era of physical contact with customers in banking is over.

“Today we announce the death of brick and mortar for transactions in banking,” said Mr Mwangi at a press briefing. While admitting the new digital platform will greatly impact the bank’s operational costs resulting in significant savings, Mr Mwangi indicated that no job losses will occur with the move to digitize its operations. The bank currently operates in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Uganda and Democratic Republic of Congo.

 Currencies

The Kenyan shilling was steady on Tuesday at a mean of KES 101.27 against the US dollar, similar to Monday’s level, as demand for dollars by oil importers was met by foreign exchange from horticulture exports. The local currency advanced against the Sterling and the Euro. The economic data that has been released following the UK’s vote to leave the European Union has generally been rather positive and typically we would see the Pound gaining vs the Euro but Sterling’s movement seems to be driven by political uncertainty.

 Read: NIC Bank to be Renamed NIC Group PLC