Foreign Investor’s Dominance At NSE Declined To 42.1% On Wednesday

Foreign investor trading declined further to account for 42.1 percent of total market turnover in the session from 71.5 percent recorded in the previous session.

The top five traded counters by the foreign desk were East African Breweries Limited, Safaricom Plc, Equity Group Holdings Plc, Kenya Re-Insurance Corporation Ltd and KCB Group Plc.

Net buying activity was mainly recorded in EABL, KCB, DTK, and KenGen while net selling was mainly on Equity, Safaricom and Kenya Re. On an overall, foreign investors were net sellers in the session similar to the previous session.

The outcome on Wednesday came even as turnover declined 20.10 percent in Tuesday’s session to close at 1.05 billion shillings. It was relatively quiet with the few players in the market concentrating on the long-end of the curve.

As the week kicked off, analysts said that they expected the week to be moderately quiet on the backdrop of this month’s bond sale announcement.

The Central Bank of Kenya (CBK) was in the market to mop up 10 billion shillings in 7-days repo which partly supported KES that closed at 102.58. Average inter-bank rate edged up 14bps to 7.17 percent.

For the session on Thursday, market analysts say that they expect trading to remain centered on the key index counters; Safaricom, Equity, KCB and EABL. Additionally, and expect market activity to remain relatively unchanged in the week with low turnover levels and sustained sell-offs by the foreign desk.