Turnover at the Bourse Declines By 12.95 Percent As Shilling Continues to Weaken

By Soko Directory Team / Published May 30, 2017 | 8:14 am

The market turnover at the bourse declined by 12.95 percent to USD 4.8 million which was an equivalent of 492.1 million shillings from Friday’s trading.

The NSE 20 declined by 0.12 percent to close at 3,438.20 while the NASI declined by 1.01 percent to close at 145.59.

The Kenyan shilling, on the other hand, continues being on the receiving end from her global peers; the US Dollar, the Sterling Pound, and the Euro.

Against the US Dollar, the Kenyan Shilling weakened by 0.84 percent year-to-date the shillings lost further against the Sterling Pound by 5.67 percent year-to-date while against the Euro, the Kenyan Shilling weakened 7.72 percent year-to-date.

On the East African Community market, in Uganda, the USE ALSI declined by 0.45 percent to close at 1,666.59 while the USE LCI reduced by 1.37 percent to close at 362.57 while in Rwanda, the RSI and RASI remained unchanged to close at 118.06 and 126.99 respectively.

Fixed Income

Secondary market turnover expanded to 3.37 billion shillings on the back of 29 bond deals transacted. Turnover was mainly attributed to trades carried forward from Friday whose execution was unsuccessful due to system issues.

Investor attention remains on the long end of the yield curve. However, we anticipate a slow down on secondary market activity as we approach the close of the month. Financial Experts, Genghis, expect the performance of the FXD1/2009/015 to encourage Central Bank to issue a longer duration bond for the month of June.

The announcement for this is expected sometime next week. Liquidity in the money market remained significantly high, signaled by the inter-bank rate coming in at 3.4 percent however the regulator did not intervene. The MPC committee concluded that overall inflation would remain above the target range for the near term, however holding CBR has reduced the threat of the demand driven inflation which motivated their decision to hold the rate at 10 percent.

About Soko Directory Team

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