Foreign Exchange Reserves
The usable foreign exchange reserves stood at USD 7,131 million (3.80 months of import cover). This falls short of CBK’s statutory requirement to endeavour to maintain at least 4.0 months of import cover as well as the EAC region’s convergence criteria of 4.5 months of import cover.
Currency
The Kenyan Shilling appreciated against the Dollar, the Sterling Pound and the Euro to exchange at KES 160.09, KES 202.00 and KES 172.43 respectively. The observed appreciation against the Dollar is attributed to a lower demand for the Dollar and tight monetary policy.
Currency | YTD Change | W-o-W Change |
---|---|---|
Dollar | 1.97% | -0.30% |
Sterling Pound | 1.08% | -0.64% |
Euro | -0.70% | -0.71% |
Liquidity
Liquidity in the money markets increased, with the average inter-bank rate decreasing from 13.26% to 13.14%, as government payments more than offset tax remittances. Open market operations remained active.
Liquidity | Week (previous) | Week (ending) |
---|---|---|
Interbank rate | 13.26% | 13.14% |
Interbank volume (billion) | 14.57 | 31.83 |
Commercial banks’ excess reserves (billion) | 22.70 | 16.20 |
Fixed Income
T-Bills
T-Bills remained over-subscribed during the week, with the overall subscription rate increasing to 213.00%, up from 107.50% recorded in the previous week. The 91-day T-Bill received the highest subscription rate at 867.62% while the 182-day T-Bill and 364-day T-Bill had subscription rates of 94.47% and 69.68% respectively. The acceptance rate decreased by 4.62% to close the week at 95.38%.
T-Bonds
In the secondary bond market, there was a higher demand for the week’s bond offers. Bond turnover increased by 0.60%, from KES 23.27 billion in the previous week to KES 23.41 billion. Total bond deals decreased by 23.06% from 594 in the previous week to 457.
Eurobonds
In the international market, yields on Kenya’s Eurobonds decreased by an average of 0.67% compared to the previous week, 0.67% month-to-date and 0.13% year-to-date. On the contrary, the yields on the 10-year Eurobonds for Angola and Zambia increased. Below is a summary analysis of performance for individual bonds.
Bond | YTD Change | M-o-M Change | W-o-W Change |
---|---|---|---|
2014 10-Year Issue | -3.87% | -4.31% | -4.31% |
2018 10-Year Issue | 0.65% | 0.10% | 0.10% |
2018 30-Year Issue | 0.50% | 0.17% | 0.17% |
2019 7-Year Issue | 0.48% | -0.51% | -0.51% |
2019 12-Year Issue | 0.78% | 0.28% | 0.28% |
2021 13-Year Issue | 0.66% | 0.23% | 0.23% |
Equities
NASI, NSE 25 and NSE 10 settled 1.29%, 0.42% and 0.89% lower while NSE 20 settled at 0.26% higher compared to the previous week, bringing the year-to-date performance to -0.86%, 1.18%, 0.79% and 0.51% respectively. Market capitalization lost 1.29% from the previous week to close at KES 1.42 trillion, recording a year-to-date decrease of 0.86%. The performance was driven by losses recorded by large-cap stocks such as Safaricom, KCB and Equity of 3.33%, 2.21% and 1.83% respectively. This was however mitigated by the gains recorded by Stanbic, ABSA and Co-op Bank of 4.55%, 1.69% and 1.67% respectively.
The Banking sector had shares worth KES 540.6M transacted which accounted for 53.87% of the week’s traded value, Manufacturing and Allied sector had shares worth KES 84.2M transacted which represented 8.39% and Safaricom, with shares worth KES 313.7M transacted represented 31.26% of the week’s traded value.
Top Gainers and Losers in the Equities Markets
Top Gainers | YTD Change | W-o-W |
---|---|---|
Transcentury | -5.77% | 8.89% |
HF Group | 9.86% | 7.37% |
Scangroup | 15.60% | 7.23% |
Kakuzi | 0.00% | 5.77% |
Jubilee | 2.70% | 5.41% |
Losers | YTD Change | W-o-W |
---|---|---|
Sasini | 0.00% | -8.88% |
Home Africa | -17.95% | -8.57% |
Umeme | -6.75% | -6.45% |
Britam | -8.56% | -6.00% |
Fahari I-REIT | -9.84% | -5.96% |
Alternative Investments
Losers | Week (previous) | Week (ending) | % Change |
---|---|---|---|
Derivatives Turnover (million) | 2.52 | 0.52 | -79.26% |
Derivatives Contracts | 23.00 | 12.00 | -47.83% |
I-REIT Turnover (million) | 0.12 | 1.05 | 768.35% |
I-REIT deals | 22.00 | 94.00 | 327.27% |
Global and Regional Markets
Global Markets | YTD Change | W-o-W |
---|---|---|
S&P 500 | 5.98% | 1.37% |
Dow Jones Industrial Average (DJI) | 2.54% | 0.04% |
FTSE 100 (FTSE) | -1.93% | -0.56% |
STOXX Europe 600 | 1.32% | 0.19% |
Shanghai Composite (SSEC) | -3.25% | 4.97% |
MSCI Emerging Markets Index | -2.84% | 0.74% |
MSCI World Index | 3.54% | 1.04% |
Continental Markets | YTD Change | W-o-W |
---|---|---|
FTSE ASEA Pan African Index | -2.99% | -1.33% |
JSE All Share | -3.58% | -1.45% |
NSE All Share (NGSE) | 34.04% | -2.45% |
DSEI (Tanzania) | 0.03% | 1.44% |
ALSIUG (Uganda) | 0.57% | 1.29% |
The US stock market closed the week in the green zone, as investors digested revised inflation data and the Federal Reserve’s monetary policy plans. The Bureau of Labor Statistics (BLS) updated Consumer Price Index (CPI) figures showed a slightly lower-than-expected increase in December, alongside recent Fed comments suggesting a slower pace of interest rate hikes.
The European stock market was volatile during the week, as investors grappled with a deluge of corporate earnings reports, regional inflation data and the potential impact of the upcoming Fed decision.
The Asian stock market closed the week on a positive trend, fueled by a shift in leadership at the market regulator and timely support measures from Beijing ahead of a holiday break.
Week’s Highlights
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