UPDATE 1-Kenyan shilling firms, stocks at new one-month high

Thu Jan 9, 2014 9:11am EST

* Main share index lifted by telecoms firm Safaricom
    * Shilling lifted by agricultural export proceeds

 (Adds market close, stocks, bonds)
    By George Obulutsa
    NAIROBI, Jan 9 (Reuters) - The Kenyan shilling gained
ground on Thursday, helped by dollar flows from non-governmental
organisations (NGOs) and agricultural exporters, while the stock
exchange's main index closed at a fresh one-month high.
    At close of trade at 1300 GMT, commercial banks quoted the
shilling at 86.50/70 to the dollar, compared with Wednesday's
close of 86.75/85.
    "(It's due to) subdued demand and also good flows on the
supply side. Remember just before the holidays most of the
exporters were out of the market: the NGOs, the likes of
horticulture.. But now they are back," a senior trader at one
commercial bank said.
    Traders said earlier in the session that the shilling was
also expected to strengthen further, thanks to foreign investors
buying local shares on the Nairobi Securities Exchange (NSE).
    "There have been good inflows from the foreign investors in
the stock market ... this is driving down the (dollar) price
because inflows remain higher than outflows. As long as they are
net buyers in the (Nairobi Stock Exchange) that's a good sign,"
Sheikh Mehran, senior trader at Kenya Commercial Bank, said.
    Traders said they see the shilling trading in the 86.50 to
87.20 range in coming days.
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index rose 33.42 points, or 0.67 percent, to close at
5,044.35 points.
    Telecoms firm Safaricom, which is usually the
heaviest traded, led the index higher. It closed the session 3.1
percent higher at 11.70 shillings a share after rising 5.3
percent to an all time high of 11.95 shillings.
    Also closing higher was Kenya Commercial Bank,
which was up 0.52 percent to end at 48.50 shillings a share,
while Co-operative Bank closed 0.83 percent higher at
18.10 shillings a share.
    On the secondary market, government bonds worth 1.5 billion
shillings ($17.29 million) were traded, compared with 1.51
billion shillings a day before.
    At a primary auction on Thursday, the weighted average yield
on Kenya's 91-day Treasury bill fell to 9.315 percent
from 9.380 percent last week, the central bank said.
               ...........................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 = 86.7500 Kenyan shillings)

 (Editing by James Macharia and Keiron Henderson)