UPDATE 1-Kenya shilling holds steady, stocks drop at slower pace

Mon Feb 3, 2014 9:50am EST

* Large cap stocks recover, stock index falls at slower pace
    * Shilling stable after last week's weakening

 (Adds shares, market close)
    By Duncan Miriri
    NAIROBI, Feb 3 (Reuters) - The Kenyan shilling was
unchanged on Monday as the market paused to assess the potential
demand and supply of dollars this month while a recovery in
large cap firms helped to moderate losses at the bourse.
    At the 1300 GMT close of trade, leading commercial banks
posted the currency of east Africa's biggest economy at 86.45/55
per dollar, similar to Friday's close.
    "We were nursing our bruises," said a senior trader with a
commercial bank, referring to last week's pressure on the
currency due to the sell-off seen in emerging markets following
tapering of economic stimulus by the U.S. Federal Reserve.   
    "People are waiting to see the level of demand and supply of
dollars for a sense of direction." 
    The shilling has escaped the worst of the emerging and
frontier market currency volatility in the last two weeks mainly
because Kenya's debt market is driven by local investors rather
than foreigners.
    "Kenya has relatively less exposure to global yield hunters
so the currency is cushioned," said a trader at a commercial
bank.
    On the Nairobi Securities Exchange, the main NSE20 share
index fell 0.57 percent to close at 4,828.34 points, a
much slower pace of fall than the previous session, when it fell
by 2 percent due to the flight of capital from emerging markets.
    Market participants attributed the lower losses on the day
to gains by blue chips, like telecoms operator Safaricom
, which gained nearly 2 percent to close at 11.20
shillings.
    "We are starting to see a bit of recovery," said Eric Musau,
a research analyst at Standard Investment Bank.
    In the debt market, bonds worth 2 billion shillings were
traded, slightly down from Friday's volume of 2.33 billion
shillings.       
               ...........................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 Toby Chopra)
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