Kenyan Shilling Strengthens as Foreigners Account for 66.97 Percent of Total Turnover

The equities market closed in gains in Monday’s trading session, with the Nairobi All Share Index (NASI) advancing 0.70 percent over Friday’s close.

Similarly, the NSE-25 and the NSE- 20 Share Indices climbed 0.17 percent and 0.73 percent to close at 2867.39 and 3223.10 points respectively.

The marked positive trend was backed by increased turnover which saw 902.93 million shillings change hands in the session while market capitalization edged by 0.70 percent to 1.81 trillion shillings. However, The A/D ratio, a measure of market breadth, tilted towards the declining counters (18) over the advancing counters (15).

Real Estate Investment Trusts (REIT) sector was the most notable gaining sector; a reversal from its lagging position in Friday’s trading session, after its sole component Stanlib Fahari I-Reit (NSE: FAHR-I) gained 1.40 percent to perch at 10.85 shillings.

The biggest losing sector was the Manufacturing & Allied sector which retreated 3.10 percent during the session, dragged down by three of its constituent counters: Flame Tree Group Holdings Ltd. (NSE: FTGH), BOC Kenya Ltd (NSE: BOC) and Eveready East Africa Ltd (NSE: EVRD).

Foreign Investors Participation at the NSE on Monday

Foreign investors accounted for 66.97 percent of total turnover against 33.03 percent of local participation.

Foreign activity shrunk 13.03 percent relative to 80.00 percent recorded in the previous session. Accumulative activities were observed in the session though to a lower degree, with net inflows of 186.26 million shillings compared to Friday’s net inflows of 523.33 million shillings.

Safaricom Ltd. (NSE: SCOM), with a turnover of 317.64 million shillings, represented 40.72 percent of total activity and 60.80 percent of foreign investor activity; as the day’s most actively traded stock.

KCB Group Ltd (NSE: KCB) came second, recording a turnover of 71.31 million shillings; to account for 9.14 percent of total market activity and 13.65 percent of foreign investor activity.

The day’s highest net inflows of 181.95 million shillings were recorded by Safaricom Ltd. (NSE: SCOM), with Equity Group Holdings Ltd. (NSE: EQTY) posting the day’s highest net outflows, 2.86 million shillings.

Performance of Kenyan Shilling on Monday

The Kenyan shilling posted mixed performance on Monday, gaining against four of the seven international and regional currency peers.

The local currency gained 0.10 percent against the US dollar at 103.65, boosted by subdued dollar importer demand and inflows from charities. Non-farm payroll data for the month of January came in at 227,000 –against an expected 180,000 – but the Achilles heel to the impressive data was on account of the lower-than-expected wage growth print that was reported at 2.50 percent.

Across the pond, the shilling advanced 0.28 percent and 0.09 percent against the pound and euro currencies respectively. UK Premier Theresa May faced new hurdles in the Brexit process, as internal Conservative party strife portends to slacken the exit talks. The euro currency was tame in the session, on mounting political risks centred on the upcoming French elections.

The hitherto conservative presidential frontrunner, Francois Fillon, has recently been embroiled in a job scandal that has improved the ratings of his opponents. The French elections, to be held this April/May, will be keenly largely on a potential victory of Euro-sceptic Marine Le Pen. Regionally, the local currency weakened 1.14 percent and 0.41 percent against the South African rand and Tanzanian shilling respectively.

Related: Shilling Depreciates Against the Dollar But CBK Has it Covered