UPDATE 1-Kenyan shilling weaker on bomb blasts, shares up

Fri May 16, 2014 11:37am EDT

(Updates with share moves, market reaction to bombings)
    By Richard Lough and Drazen Jorgic
    NAIROBI, May 16 (Reuters) - The Kenyan shilling lost
ground against the dollar on Friday, hurt by back-to-back
bombings in the capital Nairobi which knocked market confidence
in the local currency, while shares rose.
    At the 1300 GMT market close, the shilling was at 87.50/60
to the dollar, weaker than the previous session's 87.34/45
close.
    Andlip Nazir, senior trader at I&M Bank, said the currency
has come under pressure from a spate of negative news, including
the latest blasts in which at least 10 people were killed and
close to 70 wounded. 
    Tourist arrivals, a key source of hard currency, have been
cut by frequent gun and grenade attacks after Kenya intervened
against Islamist militants in neighbouring Somalia. Britain, the
United States and other Western governments have warned
holidaymakers against visiting Kenya. 
    "These travel advisories are being issued left, right and
centre. Nothing positive is coming out of the market," Nazir
said.
    Frequent liquidity mop-ups by the Central Bank of Kenya have
limited the shilling's falls but traders say the currency is
likely to come under pressure again next week.
    "CBK has been trying to mop up but that's had little effect
on the shilling," Nazir added. "The direction remains for a
weaker shilling."
    The benchmark NSE-20 Share Index gained 0.4 percent
to close the session at 4,967.57 points, lifted higher by
Kenya's leading telecoms firm Safaricom. 
    Safaricom hit an intra-day high of 13.20 shillings before
easing off to end the day at 12.85 shillings, up 2 percent on
Thursday's closing price. The stock accounted for 57.8 million
of the 70.8 million shares traded.
    Safaricom reported a 23.8 percent jump in its annual core
profits earlier this week, raising its dividend by 52 percent to
0.47 shillings per share.    
               ...........................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 = 87.5500 Kenyan Shillings)

 (Additional reporting by Duncan Miriri; Editing by Mark
Trevelyan)
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