The Economic Week – (Sept 14th – 20th)

econ indThe week saw a lot of activity at the Nairobi Securities Exchange with the NSE share index going up further and closing at an all time high of 5307.52 points on Friday. The NSE share also continued with its upward rally to close at Ksh. 25.

Some shares listed at the exchange also had a vibrant week with Equity, Britam and Jubilee insurance leading the pack in hitting their all time highs too within the week and closing on Friday at Ksh. 57.00, 34.00 and 425.00 respectively. Centum also continued with its upward rally and closed the week at Ksh. 70.50.

At the Forex market, the shilling stabilized after the Central Bank of Kenya intervened and sold the dollars for two days. The shilling closed the week exchanging at the rate of Ksh. 88.94 against the dollar, Ksh. 146.59 against the sterling pound and Ksh. 114.87 against the euro.

In the same week, CBK reported that it had bought the bulk of the Eurobonds from Treasury, thus pushing its foreign currency reserves to an all time high of $ 7.4 billion (Ksh. 653 billion); an equivalent of 4.85 moths of import cover.

Key Rates:

The inflation rate and the Central Bank rate remained unchanged at 8.36% and 8.5% respectively. The 91 days treasury bill rate stood at 8.63% while the REPO and interbank lending rates stood at 8.32% and 7.80% respectively.

CBK Discount Window lending rate stood at 14.5% while the KBBR remained unchanged at 9.13%. The average savings and deposit rates stood at 1.33% and 6.91% respectively while the lending rate for commercial banks stood at an average of 16.91%.

In the international front, Alibaba listed at the NYSE on Thursday at $68 per share but it saw a price surge to $92.70. More than 100 million shares were sold within minutes after the debut signifying the high appetite investors have for the stock which is in China’s e-commerce sector.

Hope you had a nice week and you made money at the capital markets, Forex markets, real estate and any other place where you have put your money. Have an enterprising week ahead.

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