UPDATE 1-Kenyan shilling ends steady vs dollar, shares rise

Wed Nov 21, 2012 11:01am EST

* Shilling outlooks bearish on importers dollar orders
    * Safaricom extends rally as investors seek value stocks

 (Adds markets close, stocks)
    By Kevin Mwanza
    NAIROBI, Nov 21 (Reuters) - The Kenyan shilling was
flat against the dollar on Wednesday, supported by tea exporters
selling dollars and the central bank mopping up liquidity, while
Safaricom again led shares higher.
    The shilling closed at 85.60/80 against the
greenback, barely changed from Tuesday's close of 84.70/80.
    "We've seen some inflows from the tea sector which are
supporting the shilling," said John Muli, a trader at African
Banking Corporation. "The central bank mopping up shillings is
also supporting it."
    Tea, the leading foreign exchange earner in east Africa's
biggest economy, is auctioned each Tuesday. At this week's sale
prices rose on improved demand. 
    The central bank has soaked up excess liquidity from the
market this year using repurchase agreements to stabilise the
currency, which is down 0.6 percent year-to-date. 
    However, traders said technical charts showed the shilling
would weaken in the short-term as importers buy greenbacks ahead
of the festive season, with its support level seen at 86.00.
    On the Nairobi bourse, shares of telecoms provider Safaricom
rose by 2.1 percent rise to 4.75 shillings helping the main
share index to add 0.3 percent to 4,171.87 points, its
second straight day as top gainer.
    Safaricom, one of the most traded stocks and the second-most
capitalised on the bourse, has rallied 56 percent this year on
the back of improved earnings to beat the market average rise of
29 percent year-to-date. 
    "Safaricom has rallied on value hunters and it will
comfortably hold even after it breaks above 5 shillings a
share," said Johnson Nderi, an analyst at Suntra Investment
Bank.
    Sugar grower and miller Mumias rose 2.7 percent to
5.75 shillings per share as it recovered from a slump after its
full year profit fell by a third. 
    In the debt market, the weighted average yield on a 20-year
bond fell to 13.540 percent from 14.822 percent at a similar
sale in June 2011. 
    Yields on the six-month bills fell to 9.773 percent from
10.325 percent previously.  
    "Yields are coming down in tandem with the MPC rate cuts and
falling inflation," said Crispus Otieno, a trader at Afrika
Investment Bank.
    The monetary policy committee has cut the benchmark rate
 by a total of 700 basis points since July to stand
at 13 percent.
               ...........................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 Toby Chopra)
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