UPDATE 1-Kenyan shares halt losing streak, shilling inches up

Fri Jun 28, 2013 10:58am EDT

Related Topics

* EABL shares rise 4 pct after sustained losses
    * FX markets turns focus to the next rates meeting

 (Updates with shares)
    By Duncan Miriri
    NAIROBI, June 28 (Reuters) - Kenyan stocks edged up 0.3
percent on Friday, ending five straight days of losses, as
investors saw buying opportunities in blue chips that had
dropped during this month's bear run.
    Market participants said the benchmark NSE-20 share index
 eked out its gains due to foreign investor demand for
big firms like brewer EABL, which rose 4 percent to
close at 333 shillings per share.
    However, they said it was too early to tell if the shares
had fully turned a corner following sustained losses this month.
The index has fallen 8 percent in June but is still up about 11
percent so far in 2013.
    "I wouldn't say we have hit the bottom just yet," said Kuria
Kamau, an analyst at Kestrel Capital, citing thin volumes during
the session.
     EABL had lost a quarter of its value since late May,
offering a chance for investors to start getting into it again.
Tobacco firm BAT Kenya inched up by a third of a
percentage point to close at 543 shillings per share.
    This month's drop in the main index was driven by
profit-taking, concerns over prospects of tapering of the U.S.
stimulus programme and jitters about a government plan to
re-introduce capital gains tax. 
    On the foreign exchange market, the shilling edged up
against the dollar to close at 85.80/90 from 85.90/86.10 on
Thursday, as the market continued to experience thin liquidity,
following the tax payments season.
    Traders said they were turning their focus on the next
rate-setting meeting of the central bank scheduled for July 9,
to determine where the bank wants to see the exchange rate.
    Inflation rose to 4.91 percent in June from 4.05 percent in
May, the statistics office said on Friday, but it remained
firmly within the government's preferred band of 5-7 percent.
    "Most likely they will leave lending rates on hold," said
Ignatius Chicha, head of markets at Citi Kenya. 
    In the debt market, securities worth 18.17 billion shillings
were traded this week, up from 12.88 billion shillings last
week.
    
 ...........................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 George Obulutsa)
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