Market Turnover Ticks Up To 2.03 Billion Shillings on Thursday

Market turnover ticked up on Thursday to 2.03 billion shillings from 1.62 billion shillings driven by trades across the yield curve. Demand on the long end tenor is beginning to pick up

Market analysts expect the 10-yr to have good uptake since the market was starved of medium-term papers through the liquidity crunch in the market might be a stumbling block for most commercial banks.

The shilling held at average levels of 100.77. There was improved liquidity in the market with the interbank rate declining to 6.09 percent from prior 6.20 percent.

The improved liquidity in the market boosted uptake of T-Bills with the auction registering an overall 102.18 percent performance rate. Yields declined across the tenors at the auction, in tandem with the July MPC meeting rate cut.

Turnover in Thursday’s session was uplifted by trades on East Africa Breweries Limited (NSE: EABL) and Safaricom (NSE: SCOM).

Analysts expect continued interest on the twin counters with supply on EABL at 213.00 – 214.00 levels while SCOM to oscillate at 28.75 – 29.00 levels.

Of late, there has been no solid direction on the bank stocks, being the 1H18 earnings season. However, we expect activity to trickle back as investors interpret the half-year numbers.

Participation from the locals has been subdued as they adopt a wait-and-see approach and Genghis Capital says that they still expect foreign participation to continue