December 27, 2012 / 3:06 PM / in 5 years

UPDATE 1-Kenyan shilling weakens vs dollar, shares recover

4 Min Read

* Importers buy dollars after shilling gains
    * Banks shares lead stocks market higher

 (Recasts with closer, stocks)
    By Kevin Mwanza
    NAIROBI, Dec 27 (Reuters) - The Kenyan shilling 
weakened on Thursday, pressured by importers buying dollars to
meet their end-month requirements, while shares recovered from a
two-session dip.
    The shilling was trading at 85.95/86.05 to the dollar at the
1300 GMT closer, weaker than the 85.75/95 it closed at on Monday
before the market had a break for Christmas.
    "Importers are taking advantage of the recent
(shilling)gains to buy dollars for their end-month obligations,"
a trader at one commercial bank said.
    The local currency had gained 0.3 percent over the last
week, lifted by dollar inflows from tourists visiting the
country's game reserves and Kenyans living abroad sending money
back home over the holidays.
    Tourism and overseas remittances are key sources of hard
currency for the east African country, and these two sectors
generated combined revenues of more than $2 billion in 2011.
    The shilling, which has fallen 0.8 percent against the
dollar so far this year, has been supported by the central bank
regularly mopping up excess shillings from the market this year.
 
    At the Nairobi Securities Exchange, the main NSE-20 Share
Index rose 0.3 percent to 4,122.74 points, pushed up by
banking stocks.
    Kenyan shares have risen 27 percent in dollar terms this
year and are set to end the year as the third best performing
exchange in Africa after Uganda and Nigeria. 
    Barclays Bank gained 1.3 percent to 15.70 shillings
a share, while Equity Bank shares added 1.1 percent to
23.75 shillings each.
    "There has been a continuous build up of demand on banking
stocks by foreign investors because of their good performance
outlook," said David Gitau, an analyst at Afrika Investment
Bank.
    In the fixed income market, yields on the 91- and
182-day Treasury bills fell at auction on Thursday to
8.138 percent and 8.1 percent respectively. 
               ...........................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:
                                    
            
 
 (Editing by Drazen Jorgic and Jane Merriman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below