UPDATE 1-Kenya shilling steady, main share index edges up

Fri Jan 10, 2014 9:21am EST

* Shilling steady, seen gaining
    * Share index ends higher, at new 1-month high

 (Adds market close, bonds, stocks)
    By George Obulutsa
    NAIROBI, Jan 10 (Reuters) - The Kenyan shilling was
steady on Friday, and traders said they expected it to post
gains in the days ahead, while the main share index edged
higher.
    At the close of trade at 1300 GMT, commercial banks quoted
the shilling at 86.50/70 to the dollar, the same as Thursday's
close.
    It had earlier strengthened to 86.40/60, helped by dollar
sales from farm exports. Traders expect the shilling to firm up
in the coming days helped by dollar sales from the agriculture
sector and lower demand for the U.S. currency.
    "We saw some inflows coming through from the agriculture
sector," Sameer Lagadia, head of trading at Diamond Trust Bank,
said.
    Traders said they forecast the shilling to trade in the
86.30-87.00 range per dollar in the next few days, with a bias
towards gaining more ground until the end of the month when
importers are expected to come in and buy dollars.
    "Demand is at the minimum," said Peter Mutuku, head of
trading at Bank of Africa.
    "There is also the effect of the sovereign bond that is
coming up. I think that is also psychologically supporting the
shilling." 
    Kenya plans to start marketing a $1.5 billion Eurobond this
month. Plans to launch a Eurobond in 2007 were scuttled by
violence, triggered by a disputed election, which killed more
than 1,200 people and displaced about 350,000 from their homes,
and by the global financial crisis. 
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index was up 15.17 points, or 0.3 percent to 5,059.52
points, a fresh one-month high.
    Telecoms firm Safaricom, which is typically the
heaviest traded, led the index higher. It ended the day  0.4
percent up at 11.75 shillings a share after jumping 2.1 percent
to an intraday high of 11.95 shillings.
    On the secondary market, government bonds valued at 501
million shillings ($5.78 million) were traded, down from 1.50
billion shillings a day before.
        
               ...........................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 = 86.6300 Kenyan shillings)

 (Editing by James Macharia)
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