UPDATE 1-Kenyan shilling eases slightly, stocks down

Thu Jul 3, 2014 10:13am EDT

* Stocks end lower on after recent rally
    * Forex traders eye political demonstrations

 (Adds markets close, stocks, bonds)
    By George Obulutsa
    NAIROBI, July 3 (Reuters) - The Kenyan shilling eased
a touch on Thursday due to a slight increase in dollar demand
amid higher liquidity in the money markets. Stocks ended the day
lower.
    At the 1300 GMT close of trade, commercial banks quoted the
shilling at 87.85/95 to the dollar, compared with Wednesday's
close of 87.80/90.
    "There's some demand (for dollars) coming in," said a senior
trader at a commercial bank.
    Traders said they expected the shilling to trade in a range
between 87.20-88.15 over the coming week. The shilling has lost
1.25 percent versus the dollar so far this year.
    The currency's direction could be influenced by the outcome
of planned political rallies over the next few days by the
opposition CORD coalition.
    Duncan Kinuthia, head of trading at Commercial Bank of
Africa said the markets had already priced in the political
noise but that could change if things got out of hand.
    "If sudden pronouncements are made or we have riots or any
sort of violence, that obviously could impact the currency
negatively," he said.
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index was down 38.30 points, or 0.8 percent, to close
at 4,884.69 points.
    Telecoms firm Safaricom lost 1.5 percent to close
at 12.75 shillings a share, while Equity Bank ended
the session 2.1 percent lower at 46.25 shillings.
    Kenya Commercial Bank was down 0.96 percent lower
at 51.50 shillings while British American closed 2.4
percent lower at 20.50 shillings.
    "Generally it's some profit-taking as we saw the rally for
the last two days," Virginia Wairimu, research analyst at Suntra
Investment Bank, said.
    On the secondary market, government bonds worth 809.4
million shillings were traded, compared with 514 million
shillings 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
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 (Additional reporting by Drazen Jorgic; Editing by Robin
Pomeroy)
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