CBK mop up Sh10 billion indication of improved liquidity

The Central Bank of Kenya on Monday maintained an aggressive mop-up of liquidity in the money market an ‘indication of improved liquidity’ according to analysts.

CBK mopped up Ksh 10 billion during yesterdays trading  session. Overnight rate came in at 8.93 percent with Ksh 8Billion in volume transacted.

“We expect the regulator to mop up more this week to manage the volatility in the overnight rate and protect the local unit,” according to Genghis Capital Analysts

However, they noted that “The liquidity market is still constrained as we enter a new CRR cycle from Tuesday.”

According to Cytonn Investments,  last week, “There was a net liquidity injection of Kshs 24.3 bn compared to a net withdrawal of Kshs 1.3 bn the previous week, on account of government payment and T-bill redemptions.”

On Monday, foreign investor participation reduced by 28.2 percent in the session accounting for 61.4 percent of the day’s activity.  

Activity seen in Equity Group Holdings Plc (NSE: EQTY), KenolKobil Ltd (NSE: KENO) and Safaricom Ltd (NSE: SCOM) where they bought into KENO while selling off EQTY and SCOM.

Barclays Bank of Kenya ltd (NSE: BBK), KCB Group Ltd (NSE: KCB) recorded the highest net inflows (one after the other) as Equity Group Holdings Plc (NSE: EQTY) and Safaricom Ltd (NSE: SCOM).  

Overall, foreign investors were net sellers for the third consecutive trading session (-32.05 percent) in Monday’s trading.