UPDATE 1-Kenyan shilling holds steady, shares dip

Mon Jul 29, 2013 10:42am EDT

Related Topics

* Shilling seen weakening on importer dollar demand
    * EABL shares fall on lower full-year earnings bet

 (Adds markets close, stocks)
    By Kevin Mwanza
    NAIROBI, July 29 (Reuters) - The Kenyan shilling was
steady on Monday, with traders expecting it to weaken in coming
days as importers buy dollars to make end-of-month external
payments, while shares dipped.
    At the 1300 GMT market close, commercial banks quoted the
shilling at 87.15/35 per dollar, barely changed from Friday's
close of 87.20/40.
    "We still expect mild demand for the greenback to continue
as corporates wind up their end-month dollar demand," said Bank
of Africa in a daily note.
    The shilling has been under pressure this month amid
importer demand for hard currency, while inflows from tea,
Kenya's top hard currency earner, have been hit by unrest in
Egypt - the biggest buyer of Kenyan tea. 
    The shilling has lost 0.4 percent since the central bank
sold dollars in the market a fortnight ago, a move that had
helped the local currency recover from a five-month low.
    Traders said they expected the bank to intervene again if
the shilling slid rapidly. The bank has previously said it would
only intervene in the market to stem volatility.
    In stocks, the benchmark NSE-20 share index dipped
for the first time in three sessions, shedding 0.2 percent to
4,793.82 points.
    East African Breweries, the second most
capitalised company on the Nairobi Bourse, fell 1.4 percent to
346 shillings a share as investors bet its full-year earnings
could come in lower than the previous year.
    "Investors are not expecting the brewer to perform well this
year because competition has been strong in the region," said
Ronald Lugalia, an analyst at Afrika Investment Bank.
    "Containing their cost has been an issue," he added.
    In the secondary bond market, debt worth 595 million
shillings ($6.8 million) was traded, up from 3 million shillings
on Friday.
               ...........................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 = 87.3500 Kenyan shillings)

 (Editing by Drazen Jorgic)
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