UPDATE 1-Kenyan shilling and stocks edge higher

Mon Jan 20, 2014 9:01am EST

Related Topics

* Main share index up, lifted by bank stocks
    * Shilling set to get boost from foreign investors buying
bonds

 (Adds markets close, stocks, bonds)
    By George Obulutsa
    NAIROBI, Jan 20 (Reuters) - The Kenyan shilling edged
up on Monday and could strengthen further this week on
tightening liquidity in the money markets, while the main share
index also rose slightly.
    Commercial banks quoted the shilling at 85.75/85 to the
dollar at the 1300 GMT close of trade, compared with Friday's
close of 85.80/90. It hit an intraday high of 85.65/75 during
the session.
    "We are seeing a slightly stronger shilling today. I suppose
it's because we expect a bit of shortage in liquidity this
morning mostly because of VAT payments. That will give some
momentary strength to the shilling," Nahashon Mungai, trader at
Kenya Commercial Bank, said.
    Tighter shilling liquidity makes it relatively more
expensive to hold on to long dollar positions, which helps the
shilling strengthen.
    Traders said the shilling is also expected to get a boost
from foreign investors buying government securities.
    "Good dollar inflows from offshore investors looking to buy
government debt papers is expected to help the shilling remain
well supported ..." Bank of Africa said in its daily market
report.
    The shilling is 0.9 percent stronger against the dollar so
far in 2014.
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index added 4.55 points, or 0.1 percent to close at
5,023.12 points.
    Stock analysts said the index was pushed higher by banking
stocks, with investors buying in anticipation of improved
full-year profits.
    "Generally all the banks were up in today's session, ahead
of the results. That has been the case for the last couple of
sessions," said Kuria Kamau, analyst at Kestrel Capital.
    National Bank rose 4.4 percent to close at 35.75
shillings a share after surging 8 percent to 37.00 shillings in
earlier trade, while Barclays Bank Kenya ended the
session 1.4 percent higher at 17.55 shillings a share.
    On the secondary market, government bonds valued at 3.29
billion shillings were traded, up from 1.53 billion shillings
worth of bonds traded in the last session. 
    
               ...........................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 Pravin Char)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.