UPDATE 1-Kenyan shilling slips on oil sector dollar orders

Fri Dec 28, 2012 8:57am EST

* Shilling seen weaker after the holidays
    * Shares barely changed in light trading

 (Adds markets close, stocks)
    By Kevin Mwanza
    NAIROBI, Dec 28 (Reuters) - The Kenyan shilling fell for the
second straight session on Friday as oil importers bought
dollars to make end-month purchases, while shares were steady.  
 
    The shilling traded at 86.00/20 per dollar at the
1300 GMT close, 0.2 percent weaker than Thursday's close of
85.85/86.05.
    "There are some energy and oil sector guys in the market
buying dollars," said Dickson Magecha, a trader at Standard
Chartered Bank.
    He added that dollar demand may tick up next week as
corporate clients return after the holidays, and that might
weigh on the shilling.
    The shilling is poised to close the year down 1 percent 
against the dollar, a better performance than 2011 when it hit a
record low of 107 to the dollar as inflation soared and closed
the year 4.8 percent weaker against the U.S. currency. 
    The local currency has been well supported this year by the
central bank, which kept its key lending rate high for the first
half of the year and regularly soaked up shillings from the
market via repurchase agreements. 
    Policymakers embarked on an easing cycle in July, however,
cutting the central bank rate by 700 basis points to 11 percent
in November. 
    The bank will have another rate setting meeting on Jan 10,
which analysts expect could be used to cut the official rates
further after inflation fell for the 13 straight months.
 
    In stocks, the main NSE-20 Share Index was barely
changed, slipping 0.01 percent to 4,122.22 points in low
volumes.
    Shares in leading telecoms provider Safaricom,
shed its previous session gains, falling 1 percent to 5.05
shillings.
    "Some investors could be liquidating Safaricom shares after
this year's gains," said Ronald Lugalia, an analyst at Afrika
Investment Bank.
    Safaricom shares have gained 73 percent this year,
outperforming the market average, helped by an improved
performance outlook. 
    The Nairobi bourse is the third-best performer in Africa
this year, with the benchmark share index up 27 percent
year-to-date, after Uganda's and Nigeria's.
    In the debt market, government and corporate bonds worth 2.6
billion shillings ($30.3 million) were traded, up from 2.4
billion shillings on Thursday.
               ...........................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:
                                    
            
  ($1 = 85.9000 Kenyan shillings)

 (Editing by James Macharia, Ron Askew)