UPDATE 1-Kenya shares fall after defeated Odinga challenges election result

Mon Mar 18, 2013 12:11pm EDT

* Court challenge of election results weighs on sentiments
    * Shilling may gain some from tea exports

 (Updates with close, adds shares)
    By Duncan Miriri
    NAIROBI, March 18 (Reuters) - Kenyan shares fell on Monday
on profit taking and after defeated presidential candidate Raila
Odinga filed a legal challenge to the result of this month's
presidential election.
    Odinga challenged the election outcome in court on Saturday,
alleging widespread ballot rigging in a fresh test of Kenyan
democracy five years after a disputed vote triggered deadly
tribal violence. 
    His move also weighed on the Kenyan shilling, which
weakened slightly against the dollar on Monday as it could
prolong political uncertainty in the region's biggest economy.
    The benchmark NSE-20 share index fell by 0.99
percent to close at 4,727.04 points.
    "There is some element of profit taking and there is the
election petition," said Judd Murigi, an analyst at African
Alliance.
    Analysts say a swift, transparent resolution of the petition
will be critical to restoring Kenya's reputation as a stable
democracy, following post-election violence in early 2008.
    The six supreme court judges are legally required to hear
the case and deliver a verdict within the next two weeks. 
    "We may go to another election if it is successful," Murigi
said. 
    The stock market, which surged 7 percent in the two days
after the peaceful conclusion of the March 4 vote, then suffered
falls after Odinga refused to concede defeat.
    In the currency market, leading commercial banks posted the
shilling at 85.80/90 per dollar at Monday's market close, down
slightly from Friday's close of 85.55/65.
    "Some demand for dollars is creeping in as life gets back to
normal," said Christopher Muiga, a senior trader at Kenya
Commercial Bank.
    However, he said the shilling could get some respite on
Tuesday from dollar inflows as the east African nation holds its
weekly tea auction in the port city of Mombasa.
    Technical charts were fairly neutral about the shilling,
showing it has resistance at 86.20 to the dollar and support at
84.20, with a daily range of 85.40-86.00 per dollar seen in the
next few days.
    In the debt market, bonds worth 2.10 billion shillings were
traded, down from 3.67 billion shillings worth traded in the
previous session.
           
               ...........................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 Richard Lough and Susan Fenton)