UPDATE 1-Kenyan shilling steady vs dollar, shares rise

Tue Oct 9, 2012 12:05pm EDT

* Shilling seen firming on tea sector inflows
    * Uchumi, Safaricom shares buoy bourse

 (Adds markets close, stocks)
    By Kevin Mwanza
    NAIROBI, Oct 9 (Reuters) - The Kenyan shilling held
steady against the dollar on Tuesday and traders said it could
firm in coming days on greenback inflows from tea exporters.
    Kenyan shares rose, led by Uchumi, the country's
only listed retailer. 
    At the 1300 GMT market close, the shilling traded at
85.00/20 per dollar, unchanged from Monday's close.
    "We saw a bit of pressure from the oil sector guys in the
absence of robust inflows. But we expect (dollar) inflows from
the tea sector later today and tomorrow to help the shilling,"
said Dickson Magecha, a trader at Standard Chartered Bank.
    Kenya is the world's biggest exporter of black tea, its
largest foreign currency earner. The average price of top grade
tea firmed for the third week in a row last week. 
    Kenya's weekly tea auctions take place on a Tuesday and tea
producers typically convert dollar inflows into shillings to
cover local costs. 
    However, traders warned importers would take advantage of a
stronger shilling to buy dollars once more.
    "There are a lot of dollar orders lined up at below 85.00,
so if we break that level, we could see the shilling pressured
again," another trader at a leading commercial bank said.
    On the Nairobi Securities Exchange, the main share index
 climbed 0.6 percent to 3,983.16 points as turnover more
than doubled from Monday to 319 million shillings, largely due
to shares traded in market heavyweight Safaricom. 
    Uchumi, whose shares are the biggest gainer on the bourse so
far this year - rallying about 130 percent - jumped 3 percent to
close at a five-month high of 18.90 shillings on expectations of
the first dividend in years. 
    "Guys are expecting Uchumi to do well and probably give a
dividend for the first time in six years," said Faith Atiti, an
analyst at NIC Securities.
    Uchumi, which competes against privately held Nakumatt,
Kenya's biggest retail chain by turnover, rejoined the bourse in
May 2011 after it emerged from receivership. Its shares had been
suspended since mid-2006 due to mounting debt.
    Shares in Kenya's leading mobile operator Safaricom rose 1.3
percent to 4.05 shillings as it recovered from a previous
session fall to its 4.00 shillings support level, Atiti said.
    In the debt market, government bonds worth 3.5 billion
shillings ($36.5 million) were traded, up from 3.1 billion
shillings on Monday.
               ...........................Shilling spot rates 
                  .....................Shilling forward rates 
                           .......................Cross rates 
         ..................................Local contributors 
           .......................Central Bank of Kenya Index 
          .....................Kenyan Bonds contributor pages 
                          ...............Treasury bill yields 
        ..................Central bank open market operations 
        .........................Horizontal repo transactions 
         ,       ................Daily interbank lending rate 
              .............................Kenya Bond pricing 
             ..................Real time Africa economic data 
 <ECI & AFR> ...........................African economic news
          .................................NSE-20 Share Index
         .................................NSE All Share Index
             ...........................FT NSE Kenya 15 Index
             .......................... FT NSE Kenya 25 Index
  SPEED GUIDES:
                                    
            
 
 (Editing by James Macharia and Susan Fenton)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.