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5 years ago
UPDATE 1-Kenyan shilling steady vs dollar, shares extend fall
November 28, 2012 / 3:20 PM / 5 years ago

UPDATE 1-Kenyan shilling steady vs dollar, shares extend fall

* shilling seen weaker on importers dollar orders
    * Safariom leads shares lower

 (Recasts with market close, stocks)
    By Kevin Mwanza and Duncan Miriri
    NAIROBI, Nov 28 (Reuters) - The Kenyan shilling held
steady on Wednesday but its outlook remained bearish due to
importer demand for dollars amid a wide current account deficit,
while Safaricom weighed on shares further.
    At the 1300 GMT market close, leading commercial banks
posted the shilling at 85.90/86.00 per dollar, unchanged from
the previous day's close.
    "We could take out 86.00 and head to 86.50 against the
dollar," said Christopher Muiga, a senior trader at Kenya
Commercial Bank.
    "Demand will definitely outweigh supply and the current
account deficit keeps growing and this will definitely lead to a
weaker currency."
    The current account deficit stood at just over 11 percent of
the gross domestic product in May, viewed as high by
policymakers and creating potential pressure on the exchange
rate.
    On the Nairobi Securities Exchange, the benchmark NSE-20
Share Index fell for a second straight session, down
0.3 percent to 4,128.62 points.
    Safaricom, one of the most capitalised stocks on the bourse,
accounted for more that half of the day's traded volume. The
country's leading mobile service provider dropped 2 percent to
4.90 shillings a share.
    "Safaricom is falling following investor's reaction to the
cut in calling rates, which many speculate will injure the
company's earnings," Sterling Investment Bank said in daily
note.
    Kenya's telecoms regulator cut the rate mobile phone
operators charge each other for calls made across networks by 35
percent on Monday, which is expected to hurt the top operator's
revenue. 
    In the debt market, the yield on the 182-day Treasury bills
 fell to 9.336 percent from 9.773 percent last week,
while the yield on the 364-day bills also on sale at the same
time fell to 11.709 percent from 11.943 percent previously.
 
    Government and corporate bonds worth 1.7 billion shillings
were traded on the secondary market, down from 2.8 million
shillings on Tuesday.  
               ...........................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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 (Editing by Toby Chopra)

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