Secondary Market Turnover Spikes To 1.4 Billion Shillings

Secondary market turnover increased to 1.41 billion shillings in Tuesday’s session from 534 million shillings recorded during the session on Monday.

The spike in turnover was mainly attributed to trades across the yield curve. However, demand remains overwhelming on the short-end with no supply.

The CBK analysis on Tuesday showed skewed liquidity in the market. The regulator was in the market for 10 billion shillings in reverse repos while inter-bank rate shot to 4.89 percent on volumes of 14.85 billion shillings.

The local unit, KES lost against the greenback to close at an average of 100.97 necessitated by corporate and end of month demand.

Kenyan Shilling went slightly down by 0.54 percent against the Sterling Pound to close at 132.80 but remained strong by 4.29 percent on a year-to-date.

Against the Euro, the Kenya Shilling weakened by 0.60 percent to close at 119.14 but still holding ground by 3.36 percent year-to-date

In Wednesday’s session, market analysts at Genghis Capital expect the trend that has persisted in the last two weeks to continue with activity in the main traded counters: Safaricom and banking sector counters mainly KCB Group and Equity Group.

Foreign investors continue to control the market with an exit stance which is expected to continue. Support levels for Safaricom and KCB Group were breached in the previous session though analysts might see prices maintained in Wednesday’s session with a possible downward bias. 

For the last three days of this week, market analysts expect activity to be subdued as we approach the 3Q18 reporting period.