Trading Activity Opens Week on Lower Note

Kenyan Stock Market

Trading activity opened the week on a lower note when compared to Friday’s closing. All the three indices were on a downtrend.

The NSE 20 Share index dropped 41.80 points to close the day at 3555.18 points while the NASI lost 0.94 points to settle at 137.36 points. The NSE 25 Share index shed a total of 30.35 points to end the day at 3856.59 points.

Market Capitalization decreased to KES 1975.135 points from KES 1988.634 on Friday whilst equity turnover declined from KES 0.29 billion to KES 0.17 billion as a result of a reduction in volumes traded on Monday.

• Market turnover at the bourse recorded 41.7% decrease to 173.90 MN (USD 1.72 MN) from Friday’s trading.
• NSE 20 index and NASI index dropped 1.16% and 0.68% respectively to close at 3,555.18 and 137.36.
• Foreign investors assumed a net buying position by accounting for 71.6% of total market purchases and 66.1 % of total market sales.

EAC Markets

• Rwanda:The RSE RSI and RSE ALSI remained constant to close at 142.18 and 130.03.
• Uganda:The USE ALSI and USE LSI lost 1.07% and 0.19% respectively to close at 1,663.39 and 388.81.

Kenya’s financial markets regulator, Capital Markets Authority (CMA) has launched an anonymous reporting portal to enable whistle-blowers report malpractices in the capital markets. The portal, to be accessed through the authority’s website, will give whistle blowers an opportunity to share anonymous but verifiable evidence with the regulator. ‘We as an authority recognize the pivotal role whistle-blowers can play in assisting to initiate effective investigations which lead to sustainable enforcement actions.

Currencies

The Kenya Shilling was steady today against the US dollar as it traded at a mean of KES 101.38 compared to Friday’s closing average of KES 101.34.The shilling’s weakening streak against the Sterling and the Euro slowed down as news of a healthier political environment in Britain following the entry of a new Prime Minister cooled off.

The shilling lost a meagre 0.04% against the Pound and gained a margin of 0.17% against the Euro. We expect the shilling to remain firm against all the major international currencies this week since the Central bank of Kenya may likely intervene to prevent any out of range instability of the local currency.

• Against the US Dollar, the Kenyan Shilling strengthened 0.91% year-to-date.
• Against the Sterling Pound, the Kenyan Shilling strengthened 11.20% year- to-date.
• Against the Euro the Kenyan Shilling weakened 0.55% year-to-date.