This archive report was first published on 21 October 2019.
At the Nairobi Securities Exchange (NSE), the week ending 18th October 2019 saw a significant increase in equity turnover, reaching $34.4 million, up from $13.4 million the previous week.
Foreign investors remained net sellers for the week, with a net selling position of $8.5 million, from a net selling position of $0.4 million the previous week.
The banking sector was the main driver of activity at the NSE, with NASI, NSE 20, and NSE 25 gaining by 0.5%, 0.2%, and 1.5%, respectively.
Stocks in the banking sector, including NIC Group, I&M Holdings, Equity Group, and KCB Group, recorded significant gains, with NIC Group leading the way with a 10.2% increase.
The excitement in the banking counters was largely due to news that President Uhuru Kenyatta had sent the Financial Bill 2019 back to parliament after refusing to repeal the Rates Cap law.
As part of its efforts to create a standard identification system for issuers, the NSE updated issuer codes for select counters, including Car & General Plc, I&M Holdings Plc, Stanbic Holdings Plc, and Sameer Africa Plc.
According to the Central Bank of Kenya, the local unit remained stable against major international and regional currencies during the period ending October 17, with the Kenya Shilling exchanging at Sh103.71 per US Dollar.
The money market was liquid during the week, mainly due to government payments and net redemption of government securities, while the open market operations remained active.
Commercial banks' excess reserves stood at Sh16.4 billion in relation to the 5.25% cash reserves requirement (CRR).
Uncertainties in the global financial markets remained during the week, with the IMF revising downwards its global growth forecast for 2019 and the UK and EU reaching an agreement on a new Brexit deal.
International oil prices increased slightly during the week, partly due to optimism for a trade deal between the US and China and the postponement of the planned hike in duties on at least US$250 billion Chinese goods.
