UPDATE 1-Kenya shilling steady, stocks close higher

Wed Jun 18, 2014 10:29am EDT

Related Topics

* Shilling seen boosted by Eurobond sale
    * Stocks close higher, lifted by Kenya Airways, Equity Bank

 (Adds markets close, stocks, bonds)
    By Duncan Miriri and George Obulutsa
    NAIROBI, June 18 (Reuters) - The Kenyan shilling was
little changed Wednesday, and traders said the band it was
likely to trade in had widened after Kenya's successful Eurobond
debut. Stocks closed higher.
    At close of trade at 1300 GMT, commercial banks quoted the
shilling at 87.50/70, compared with Tuesday's close of close of
87.55/65, after touching a high of 87.40/60 during the session.
    "It is more reaction to the positive news on the Eurobond,"
said a senior trader with a commercial bank. The country's
maiden sovereign bond was heavily oversubscribed.
    "We would most likely be much stronger if it wasn't for the
security concerns, which definitely will have a very negative
impact on tourism.," he said.
    Militants carried out two attacks on the coast earlier this
week and killed 65 people, the latest in a spate of gun and bomb
assaults that have hurt the vital tourism sector.  
    The trader said the shilling could face dollar resistance at
87.25, effectively widening its likely trading band over the
next few days to 87.25-88.00 from the previous range of
87.50-88.00. 
    On the Nairobi Securities Exchange, the main NSE-20 Share
 was up 26.27 points, or 0.55 percent higher, at
4,790.83 points.
    Equity Bank, which plans to launch a mobile
telecoms service in July to take advantage of the fast-growing
cell-phone-based financial-services market, was up 2.3 percent
to end at 44.25 shillings a share.
    "They are having a conference call tomorrow to discuss the
mobile financial services strategy with foreign investors," said
Ian Gachichio, a research analyst at Kestrel Capital. That call
may have "stimulated foreign investors to look at it more
closely today. They are the ones who have driven up the stock
today."  
    Also closing higher was Kenya Airways, which was
up 8 percent to end at 12.20 shillings a share. The airline will
soon announce its earnings for the full year ending in March.
Analysts say investors are confident the results improved from
last year, when it lost 10.83 billion shillings.
    "They are about to release their results soon, so that could
probably be likely the reason. Someone is buying in anticipation
of favourable earnings," Gachichio said.
    On the secondary market, government bonds valued at 13
million shillings were traded, compared with 1.12 billion
shillings a day before.    
               ...........................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:
                                    
            
 
 (Reporting by Duncan Miriri; Editing by Larry King)
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