Shilling Down amid Continued Demand for Greenback from Importers

Equities

Trading activity increased significantly on Thursday owing to a huge foreign investors’ presence in the movements of Safaricom, Equity bank and East African Breweries.

The NSE 20 Share index was merely changed to close the day at 3168.62 points, while the NASI gained an additional 0.33 points to end the day at 130.75 points.

The NSE 25 Share index slid down slightly to settle at 3420.70 points from 3420.86 points yesterday. Shareholders wealth was up marginally to KES 1882.76 billion from KES 1877.959 before, whilst equity turnover jumped to KES 1.99 billion from KES 0.78 billion previously due to a substantial rise in the volume of shares traded.

Trans-Century was the biggest gainer yesterday, up 95% from its 12 month low and continuing its uptrend since when it bounced back to profit as noted in its half year ended June results, following a debt pardon. The company made a net profit of KES 1.3 billion in the six months ended June after the KES 4 billion debt forgiveness.

The company’s bond holders reduced their claim from KES 8 billion to KES 4 billion, lightening its liabilities. The firm recently moved to reduce its finance costs by proposing a transfer of over KES 15 billion of its existing loans from various financiers to Cairo-based Africa Export-Import Bank (Afreximbank).The company is projecting improved performance in the second half of the year, citing higher demand for its power and engineering subsidiaries.

 Currencies

The Kenyan shilling faded further on Wednesday as it traded at an average of KES 101.32 compared with a mean of KES 101.27 previously due to continued pressure from importers in demand for the greenback.

The Sterling Pound and the Euro ascended a head against the shilling following manufacturing and construction data which of late came in well above expectations. UK manufacturing was the best single month improvement for twenty-five years though uncertainty still lingers since most international players with headquarters in London have threatened to relocate following the referendum vote.