The turnover peaked on Tuesday to a total of 2 billion shillings driven by trades across the board according to stats by Genghis Capital.
Market analysts say that there is a demand on the long term papers and this may be due to the uncertainty in this month’s auction results.
Citing excess liquidity in the market, CBK came in to mop 5 billion shillings in the 7-day repo at an average of 6.52 percent. The interbank closed at 2.83% with KES dipping further to average 102.8
Market activity remains subdued as local investors take a wait and see approach. Activity is concentrated on the key counters; Safaricom, Equity and KCB, though and analysts expect prices to remain stable as investors are not aggressive in the market.
Despite this, investors might see an increase in trading activity in the banking counters as they announce their 3Q18 results this week.
Fuel Prices
The Energy Regulatory Commission (ERC) is expected to announce fuel pump price applicable for November 15th – December 14th period.
ADNOC (Abu Dhabi National Oil Company) Murban, Kenya’s benchmark oil, edged up 2.43% m/m in October to close at USD 82.30 per barrel.
KES was under pressure in October, losing ground 1.21 percent m/m to end at 102.03 against USD. Analysts thus expect broad price increment on Super Petrol, Diesel and Kerosene during the review, mainly on account of increased average landed cost of the imported products.