Shilling Slightly Gains on weak US Service Sector Data

Currency

During Thursday’s trading session the Kenyan shilling extended further weakening against most of its comparative peers. The local shilling marginally advanced against the US Dollar by 0.08% to close at 102.28 as doubts linger on the Fed rate hike policy outlook for 2016 following weak US service sector data. However, the local unit shed by 1.00% against the Sterling Pound (GBP) following the Bank of England’s decision to keep rates held at their record lows of 0.5%, though it cut the economic growth forecast for the UK. On the regional front, the shilling weakened by 0.66% and 0.29% against the Ugandan (UGX) and Tanzanian shilling (TZS) respectively.

Foreign Investor Participation

The foreign participation edged up on Thursday’s trading session, accounting for 73.80% of total turnover against 26.20% of local participation. Sell off activities did not offset buy side, resulting in net inflows worth KES 526.00Mn relative to KES 185.67Mn net inflows on Wednesday.

Foreign investors accounted for 73.80% of the NSE turnover as compared to 64.73% on Wednesday. Foreign investors engaged in net accumulative activities, resulting in net inflows worth KES 526.00Mn.

East Africa Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 217.33Mn to account for 30.49% of total market activity and 41.32% of foreign investor activity, followed by Safaricom Limited (NSE: SCOM) with a turnover of KES 153.13Mn representing 24.48% of total market activity and 13.10% of foreign investor activity.

East Africa Breweries Limited (NSE: EABL) posted the day’s highest net inflows worth KES 57.62Mn and the day’s highest net outflows, worth KES 6.19Mn, were posted by Equity Group Holdings Limited (NSE: EQTY).

Research by Genghis Capital.