UPDATE 1-Safariom drags Kenyan shares lower after call rate cut

Tue Nov 27, 2012 10:38am EST

* Safaricom falls on termination rate cut
    * Exporters selling dollars could support shilling

 (Adds markets close)
    By Kevin Mwanza
    NAIROBI, Nov 27 (Reuters) - Safaricom dragged
Kenya's main stock index lower on Tuesday as investors sold
shares a day after the telecoms regulator cut the rate mobile
phone operators charge each other for calls made across
networks.
    The benchmark share index fell 0.6 percent to
4,139.02 points, led by Safaricom, one of the most capitalised
stocks on the bourse. The country's leading telephone service
provider dropped 3.8 percent to 5.00 shillings a share.
    Kenya's telecoms regulator cut the rate mobile phone
operators charge each other for calls made across networks by 35
percent on Monday, which analysts said could hurt the top
operator's revenue. 
    "Most guys are taking profits because of the negative
sentiment after the termination rate cut, which might affect
their revenue," said Faith Atiti, an analyst at NIC Securities.
    Safaricom is up nearly 70 percent this year and was the most
traded stock during the session with 77 million shares, or 92
percent of the day's volumes.
    In the foreign exchange market, the shilling closed
at 85.90/86.00 to the dollar, barely changed from Monday's close
of 86.00/10.
    Traders said the currency could recoup some losses it had
incurred in the previous session as farm sector exporters
stepped in to cash in on its currency.
    "Exporters especially from the tea sector are likely to come
in selling dollars. That could help the shilling a bit," said a
trader at one commercial bank.
    The shilling fell to a near-six month-low against the dollar
in the previous session, hit by demand for dollars ahead of the
holiday season.
     In the fixed-income market, government and corporate bonds
worth 2.8 billion shillings were traded, up from 957 million
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
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 (Editing by Yara Bayoumy and Catherine Evans)