UPDATE 1-Weekend attacks weigh on Kenyan shilling, shares

Mon May 5, 2014 10:59am EDT

* Shilling falls, top share index down 0.6 pct
    * Investors looking for government reassurance

 (Adds shares, closing rate)
    By Duncan Miriri
    NAIROBI, May 5 (Reuters) - Kenya's shilling dipped
against the dollar on Monday and shares fell after bomb attacks
in the capital and the country's main port over the weekend.
    At least seven people were killed in the Nairobi and Mombasa
blasts, which are likely to do further damage to the nation's
embattled tourism industry. No one has claimed responsibility,
but officials suspect militants linked or sympathetic to Somali
Islamists.
    At the 1300 GMT close of trade, commercial banks quoted the
shilling at 86.95/87.05, weaker than last week's 86.80/90 close.
    "It is a knee-jerk reaction ... " said a senior trader with
a leading bank. "For the time being, we might see the shilling
remaining under pressure. Until we get something conclusive in
terms of the situation being under control, then the shilling
will take a weakening tone."
   The local currency has held its ground against the greenback,
edging down 0.3 percent in the year to date. In the stock
market, the benchmark NSE-20 share index dropped 0.6 percent to
close at 4930.63 points.
    Shares in telecoms operator Safaricom, which is
the most frequently traded stock, shed 0.7 percent to close at
13.00 shillings each. Shares in KCB Bank lost 0.5
percent to close at 49.75 shillings per share.  
    Aly Khan Satchu, an independent trader and analyst, said the
attacks were responsible for "turning the market defensive."
    Kenya has suffered a string of gun and grenade attacks since
October 2011 when it sent troops across the border into Somalia
to pursue al Shabaab militants who had carried out several raids
on Kenyan soil.
    The government has dismissed criticism by many Kenyans who
complain it has not done enough to secure the nation since
Islamist gunmen raided a shopping mall in Nairobi last year,
killing at least 67 people.
    In the bond market, bonds worth 210 million shillings were
traded, plunging from Friday's volume of 2.36 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 Larry King)
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