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UPDATE 1-Kenyan shilling, shares hit new four-month highs
October 8, 2013 / 3:07 PM / in 4 years

UPDATE 1-Kenyan shilling, shares hit new four-month highs

* Foreign interest in local bonds, shares lift shilling
    * Shares rise for the 10th straight session
    * Eighteen out of twenty blue chips rise

 (Adds markets close, shares)
    By Kevin Mwanza
    NAIROBI, Oct 8 (Reuters) - The Kenyan shilling hit a
four-month high on Tuesday, lifted by strong demand for the
country's infrastructure bond, while stocks rose for the 10th
straight session.
    At the 1300 GMT close of the market, commercial banks quoted
the shilling at 84.80/85.00 per dollar, 0.4 percent stronger
than Monday's close of 85.10/30.
    Duncan Kinuthia, head of trading at Commercial Bank of
Africa, said there had been selling of dollars particularly from
overseas investors looking to buy into an extended sale of a
Kenyan infrastructure bond.
    The 12-year bond, first auctioned by the central bank last
month to raise 20 billion shillings, was offered again through a
tap sale for the next three months to raise an additional 16
billion shillings. 
    Infrastructure bonds, so called because proceeds are used to
fund building of specific projects like roads, appeal to
investors because they come with incentives such as an exemption
from withholding tax.
    The shilling has also benefited from the political impasse
in the United States over the budget there that has led to a
partial government shutdown, weakening the dollar as a result.
    In the stock market, the main NSE-20 share index 
gained for the 10th straight session, rising 1 percent to close
at 4,930.79 points. Only two out of the 20 firms it tracks
dipped.
    East Africa's biggest telecoms firm Safaricom 
touched a new record high of 9.50 shillings per share during the
session, although it pared some gains to close at 9.40
shillings.
    Safaricom, the most traded stock on the bourse, has rallied
14 percent in the last seven sessions, extending its gains this
year to 88 percent. It is the best-performing stock on the
market so far this year.
    "Good liquidity coupled with expectations for significant
improvement in earnings has sustained investor interest in
Safaricom," said Ronald Lugalia, an analyst at Afrika Investment
Bank.
    In the secondary bond market, debt worth 4.2 billion
shillings was traded, up from 2.06 billion shillings on Monday.
               ...........................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 = 85.2500 Kenyan shillings)

 (Editing by Duncan Miriri)

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