Sasini Tops at NSE as Kenya Shilling Weakens Against Major Currencies

Sasini Ltd (NSE: SASN) emerged as the top gainer at the Nairobi Securities Exchange on Tuesday gaining by 8.56% to close the day at KES 19.65. B.O.C Kenya Ltd (NSE: BOC) came second; gaining 5.88% to close at KES 90.00.

However, Uchumi Supermarkets Ltd (NSE: UCHM) emerged the day’s top loser; edging down by 8.96% to close the day at KES 3.05 whereas Trans- Century Ltd (NSE: TCL), followed suit declining by 6.67% to end the day at KES 6.30.

Safaricom Ltd (NSE: SCOM) was the most actively traded stock on Tuesday accounting for 53.01% of the total market value traded activity.

East African Breweries Ltd (NSE: EABL) was the second most actively traded counter, accounting for 53.01% of the total market turnover.

The foreign investors accounted for 77.00% of total turnover against 23.00% of local participation. Accumulative activities took center-stage, resulting in net inflows worth KES 46.37Mn relative to net outflows worth KES 22.98Mn on Monday. 

Equities:

On Tuesday’s trading session, the bourse was characterized by mixed trends on the indices and improved trading levels as depicted by the value of transactions.

The NASI All Share Index lost ground by 0.21% to close at 136.65 points whilst the NSE-25 Share Index, dipped marginally by 0.55% to perch at 3606.53 points.

The Nairobi 20 Share Index closed in the green, increasing by 0.21% to settle at 3256.57 points.

Equity turnover and market capitalization posted varied trends, as the former increased slightly by 12.65% to close at KES 0.545 billion and the latter contracted by 0.21% to close at KES 1,978.26 billion.

Currencies:

The Kenyan shilling bucked a downward trend, rallying against all-but-one of its seven peers.

The local currency furthered losses against the Sterling pound, by 0.475 on the day, to close trading at 126.99.

The pound continued to remain buoyant on its long-term correlation with the dollar and major investors arguing that the market had come far enough to account for initial risks of the Brexit. Third-quarter GDP offered hope, while business investment topped expectations, despite the Bank of England warning of their vulnerability; defying expectations of a material slowdown.

The USDKES pair erased losses, realised in the previous trading day, registering a 0.01% gain on the day.  Investors adopted a stand-off approach on the greenback, prior to a second look at third quarter GDP; with expectations of a rate hike declining to 97.8%. On the regional front, the shilling garnered a significant 1.2% against the South African rand.

The rand was supported by markets perceiving President Zuma’s hand would be weakened, following the no-confidence vote at the ANC’s meeting; while Fitch and Moody’s investment-grade rating remained the underlying driver.