Turnover continued to climb closing at 2.9 billion shillings, largely driven by a few investors taking positions across the curve.
Activity on the IFBs also picked up albeit at slightly higher yields than the yield curve. Market sentiment is scattered with investors on both sides of the fence on the direction of rates.
If liquidity holds, this should lead to an exciting first quarter. The overnight rate remained range-bound at 4 percent levels while the shilling held steady closing at 101.8.
“Our view is that current interest rate variables will remain stable for most of this quarter and there are trading opportunities on the longer-dated IFBs as well as the 10-year space,” said analysts from Genghis Capital.
Turnover increased in the previous session to 779.59 million shillings bouncing back from Tuesday’s session which recorded low turnover on the back of a technical glitch at the bourse.
Foreign investors remained dominant in the market at 84.1 percent of total trading with most activity in the index counters.
This trend is expected to continue into today’s session with a possible sell-off on the majority of these counters.