Shilling Weakens Against US Dollar

Currency

The Kenyan shilling weakened against the US Dollar by 0.03%, despite the dollar retreating from peaks against its own basket of currencies. The weekly outlook for the dollar remains bearish, although not all bad news; as its retreat could be interpreted as a corrective pullback and not a revaluation of the U.S. outlook. Across the Atlantic, the shilling shed significant points against the Sterling pound and the Euro; by 0.31% and 0.46% (respectively). The euro garnered support following election of reformist former Prime Minister Francois Filllon as the centre-right candidate and favourite to become France’s next president.

Prior to the polls, markets worried that his opposition could edge it, following a promise to carry out a referendum on EU membership; thus, threatening the future of the currency bloc. ECB President Mario Draghi’s comments have the potential to shift the euro higher, if they manage to hold off any signal on the pace of quantitative easing, in his testimony to the European Parliament (after markets close). Liquidity in the Kenyan money market was skewed, prompting the Central Bank of Kenya to inject KES 15Bn worth of reverse repos.

Foreign Investor Participation

The foreign investors accounted for 80.23% of total turnover against 19.77% of local participation. Distributive activities took center-stage, resulting in net inflows worth KES 22.98Mn relative to net inflows worth KES 0.54Mn on Friday.

Foreign investors accounted for 80.23% of the total NSE. Foreign investors engaged in net distributive activities, resulting in net outflows worth KES 22.98Mn.

East African Breweries Limited (NSE: EABL) recorded a turnover of KES 139.98Mn, representing 28.92% of total activity and 05% of foreign investor activity; as the day’s highest traded stock. Followed by Kenya Commercial Bank Limited (NSE: KCB), which recorded a turnover of KES 42.77Mn; to account for 7.78% of total market activity and 11.47% of foreign investor activity.

British American Tobacco Limited (NSE: BAT) posted the day’s highest net inflows worth KES 5.54Mn. Whereas, the day’s highest net outflows, worth KES 1.36Mn, was posted by East African Breweries Limited (NSE: EABL).

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