UPDATE 1-Kenyan stocks end winning streak; shilling steady

Thu Aug 7, 2014 10:41am EDT

Related Topics

* EABL, KCB help lead share index lower
    * Shilling holds in a tight range; focus on liquidity

 (Adds markets close, bonds, stocks)
    By George Obulutsa
    NAIROBI, Aug 7 (Reuters) - Kenyan banking shares and those
of East African Breweries Ltd (EABL) fell on Thursday,
ending five days of gains on the bourse. The shilling held
steady.
    The Nairobi Securities Exchange's main NSE-20 Share Index
 fell 0.2 percent or 10.86 points to close at 5,011.51
points.
    Shares in EABL, the region's biggest brewer, fell 1.3
percent to 309 shillings on profit-taking before the release of
its full-year results, traders said.
    KCB Bank Group, the largest bank in Kenya by
assets, fell 0.52 percent to 55.00 shillings, largely because
the value of the stock was diluted when additional shares were
listed under the company's Employee Share Ownership Programme.
    "KCB traded very actively during today's session," said
Kuria Kamau, a research analyst at Kestrel Capital. "There were
new shares that were being credited. Those are the ESOP shares
coming into the market and as a result there is some dilution."
    On the foreign exchange market, the shilling closed
at 87.85/95 to the dollar, unchanged for Wednesday's close.
    The Central Bank of Kenya has been injecting local currency
into the market for the past week, to ease tight liquidity that
has led to rising interbank lending rates.
    Traders have said the cash crunch in the money market was
caused by delays in the government disbursing funds to
departments and local authorities. The central bank was
injecting too little to bring down the rates, some traders said.
    On the interbank market, the weighted average lending rate
rose to 11.4557 percent on Wednesday from 10.7589 percent a day
earlier, while volumes borrowed fell to 7.52 billion shillings
from 15.48 billion shillings ($176.31 million). 
    The central bank said it planned to inject 15 billion
shillings into the money markets on Thursday, a day after
injecting the same amount using reverse repurchase agreements at
a weighted average rate of 13.782 percent. 
    Traders said there was dollar demand from oil companies, but
the tight liquidity was propping up the shilling.
    "We have seen the liquidity is improving but the rates are
still going up, indicating that there is still demand for the
local currency," said a senior trader at one commercial bank.
    "We've seen (dollar) demand filtering through but the
tightness in the market is what is supporting the local
currency." 
    They forecast the currency to trade in the 87.50 to 88.00
range in coming days.
    On the secondary market, government bonds valued at 3.17
billion Kenyan shillings ($36.10 million) were traded, down from
4.45 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 US dollar = 87.8000 Kenyan shilling)

 (Editing by James Macharia, Larry King)
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