Shilling Hits 102 Mark Against US Dollar

The Kenyan shilling furthered losses against the dollar, as the greenback continued to be supported by positive economic data. The Central Bank of Kenya (CBK) exacerbated the effects, injecting KES 2.69Bn worth of liquidity in reverse repos (yesterday). The USDKES pair weakened by a further 0.01%, edging it over the 102 boundary, in early-morning trades; swept up by momentum of Trump’s announcement that Japan’s Softbank would invest USD 50Bn in the U.S and expectations of a rate hike.

Gains by the dollar were capped, following Russian’s President Putin personal agreement to a Russian oil output cut, of approximately 300,000 barrels per day. Across the Atlantic, investors begun to take positions prior to the European central bank’s monetary policy meeting on Thursday. Market sentiment has been dominated by Italian Prime Minister Matteo Renzi’s resignation announcement; the euro rebound was triggered with the government showing interest in acquiring a controlling stake in one of the country’s troubled lenders. The EURKES pair rallied by 0.09%. On the regional front, the shilling weakened against the South African rand by 0.67%; despite the latter’s weaker-than expected 0.2% Q3 GDP growth.

Foreign Investor Participation

The foreign investors accounted for 68.68% of total turnover against 31.32% of local participation. Distributive activities took center-stage, resulting in net outflows worth KES 26.28Mn relative to net inflows worth KES 25.10Mn on Tuesday. Foreign investors accounted for 68.68% of the total NSE turnover. Foreign investors engaged in net distributive activities, resulting in net inflows worth KES 26.28Mn.

East African Breweries Limited (NSE: EABL) recorded a turnover of KES 127.17Mn, representing 47.60% of total activity and 69.30% of foreign investor activity; as the day’s highest traded stock. Safaricom Limited (NSE: SCOM) came second, recording a turnover of KES 43.23Mn; to account for 16.18% of total market activity and 23.56% of foreign investor activity.

The Co-operative Bank of Kenya Limited (NSE: COOP) posted the day’s highest net inflows worth KES 1.47Mn. The day’s highest net outflows, worth KES 15.99Mn, was posted by Safaricom Limited (NSE: SCOM).

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