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UPDATE 1-Kenyan shilling seen holding ground, shares flat
April 29, 2014 / 2:31 PM / 3 years ago

UPDATE 1-Kenyan shilling seen holding ground, shares flat

* Central bank's actions seen supporting shilling
    * Main shares index almost flat, Bamburi falls

 (Adds closing rate, shares)
    By Duncan Miriri
    NAIROBI, April 29 (Reuters) - Kenyan assets were barely
changed on Tuesday, with traders expecting sluggish dollar
demand and the mopping up of liquidity by the central bank to
help the shilling hold its ground in coming days.
    At the 1300 GMT close of trade, commercial banks quoted the
shilling at 86.85/95 to the dollar, unchanged from Monday.
    "Diminishing dollar demand and central bank action should
put a ceiling on the dollar (strengthening)," said Andlip Nazir,
senior trader at I&M Bank.
    The central bank mopped up 15.55 billion shillings ($179.04
million) from the market on Tuesday at a weighted average yield
of 8.498 percent, all the bids it received for 20 billion 
shillings at a repurchase agreement (repo) offer. 
    Nazir said traditional end-month dollar demand by firms
looking to pay their bills was low, which should ease pressure
on the local currency and keep the shilling pegged in a tight
range between 86.70 and 87.00 in coming days.
    The dollar has been roughly flat against the dollar this
year.
    On the stock exchange, the benchmark NSE-20 share
index was almost flat, shedding 1.64 points to close at 4,956.52
points, as gains by bank stocks were offset by losses in shares
of one of the country's biggest cement firms.
    Bamburi Cement dropped 6 percent to close at 170
shillings per share ahead of a ruling by the country's
competition authority on whether the firm has an undue advantage
in the market due to its shareholding structure.
    "That is not boding well for a number of investors," said
Daniel Kuyoh, a research analyst at Kingdom Securities.
    Bamburi is controlled by French cement firm LaFarge
, which also has a significant stake in another local
cement maker, Portland.
    The government wants the competition authority to decide if
that cross-ownership gives Bamburi an undue advantage.
    KCB Bank rose by 1 percent to close at 49.75
shillings a share ahead of its first quarter results on
Wednesday.
    In the debt market, bonds worth 3.57 billion shillings were
traded, up from a volume of 1.61 billion shillings in the
previous session. 
               ...........................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 = 86.8500 Kenyan Shillings)

 (Editing by James Macharia and Catherine Evans)

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