UPDATE 1-Kenyan shilling steady, stocks close higher

Thu Apr 24, 2014 10:07am EDT

* Shilling seen easing in coming days
    * Central bank mops up liquidity
    * Investors bet on strong Safaricom results

 (Adds market close, bonds, stocks)
    By George Obulutsa
    NAIROBI, April 24 (Reuters) - The Kenyan shilling 
held steady on Thursday, although  traders said it was likely to
come under pressure from importer demand for dollars over the
next week.
    Kenyan stocks closed higher.
    At the 1300 GMT market close, the shilling traded at
86.85/95 to the dollar, little moved from Wednesday's close of
86.90/87.00.
    "There were some good inflows today, from the tea sector,
and also the central bank was again in the market mopping up, so
that  is keeping a cap on the dollar," said Andlip Nazir, senior
trader at I&M Bank. 
    "But going forward, between now and the end of the month, we
will see some pressure on the shilling." 
    The central bank has repeatedly drained liquidity from the
money market, making it more expensive to hold onto long dollar
positions and shoring up the shilling. The local currency is
0.42 percent weaker against the dollar since the start of 2014.
    The bank mopped up 2 billion shillings ($23.01 million) from
the money markets on Thursday. 
    "The local unit's gains against the greenback are seen
limited in the near term as importers' activities are likely to
shape the local FX price action," Commercial Bank of Africa said
in a market briefing.
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index ended up 0.39 percent at 4,923.71 points.
    Among the gainers was telecoms firm Safaricom,
which climbed as much as 2.3 percent to hit 13.30 shillings a
share before closing the session at 13.20 shillings.
    Eric Musau, a research analyst at Standard Investment Bank,
said investors anticipated strong full-year results from
Safaricom, which posted a 38 percent leap in first half profit.
    On the secondary market, government bonds worth 4.22 billion
shillings were traded, compared with 4.08 billion shillings
traded on Wednesday.
               ...........................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 = 86.9000 Kenyan shillings)

 (Reporting by George Obulutsa; Editing by Richard Lough and
Susan Fenton)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.