UPDATE 1-Kenyan shilling firms, main share index ends lower

Wed Dec 4, 2013 10:16am EST

* Shilling gains as agriculture's dollar sales rise
    * Main share index closes 0.66 percent lower

 (Adds markets close, stocks, bonds)
    By George Obulutsa
    NAIROBI, Dec 4 (Reuters) - The Kenyan shilling gained
slightly on Wednesday, helped by dollars from farm exports.
Shares edged lower, dragged down in a general correction in most
stocks.
    At the 1300 GMT close of trade, commercial banks quoted the
shilling at 86.45/55 to the dollar, compared with Tuesday's
close of 86.65/75.
    "It's (due to) subdued demand and good flows from the
agricultural sector," a senior trader at one commercial bank
said.
    Bank of Africa said in its daily market report that demand
and supply would remain matched as Christmas approached. The
shilling might gain as business demand for dollars eases off
afterwards.
    During the session, the central bank mopped up 10 billion
shillings in excess liquidity using repurchase agreements at a
weighted average rate of 8.181 percent. It received bids worth
13.1 billion shillings.
    Traders said they expect the shilling, which is 0.4 percent
weaker in the year to date, to trade in the 86.20 to 86.70
ranges in coming days.
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index fell 0.66 percent to close at 5,042.94 points on
what traders said was a correction across the board.
    Kenya Commercial Bank closed 1 percent lower at
46.00 shillings. Telecoms company Safaricom, typically
the most traded stock, fell 0.5 percent to 10.75 shillings.
    "We don't have significant support in the market to support
the current market valuations," Ronald Lugalia, analyst at
Afrika Investment Bank, said.
    On the secondary market, government bonds valued at 1.8
billion shillings were traded, up from 1.14 billion shillings
traded a day before.
    During Wednesday's primary sale of debt, the weighted
average yield on 182-day Treasury bills fell to 10.372 percent
from 10.473 percent last week. Yields on 364-day Treasury bills
also eased, to 10.761 percent from 10.835 percent.
    
               ...........................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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 (Reporting by George Obulutsa; Editing by Duncan Miriri and
Larry King)
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