Kenyan Equities Steady As Treasury Bill Fall And Strong Diaspora Remittances Support Stability
Date
12/23/2024 2:31:54 PM
(MENAFN- Investor Ideas) Investorideas, a go-to platform for big investing ideas releases market commentary from Ahmad Assiri Research Strategist at Pepperstone.
Kenyan equities are expected to remain steady around the 1,900-point mark, with the NSE 20-share index closing flat last Friday. The decline in the 91-day Treasury bill rate below 10% for the first time since April 2023 reflects the Central bank of Kenya's (CBK) accommodative monetary policy. While this may make equities more attractive compared to government securities, retail investors, who have favoured Treasury bills for their attractive rates, might shift to other investments, altering the fixed-income market dynamics.
The Kenyan shilling remains stable against the U.S. dollar, supported by a 19.2% rise in diaspora remittances to USD 423.2 million in November 2024, according to CBK. These inflows have strengthened the current account and foreign exchange market, ensuring more financial stability. With foreign exchange reserves at USD 9 billion, covering 4.6 months of imports and meeting statutory requirements, confidence in the market remains strong and may attract foreign investment.
Disclaimer/Disclosure: disclaimer and disclosure info
Global investors must adhere to regulations of each country.
MENAFN23122024000142011025ID1109024790
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.