May 12, 2014 / 3:42 PM / 3 years ago

UPDATE 1-Kenyan shilling edges higher, shares rise on banking stocks

NAIROBI, May 12 (Reuters) - The Kenyan shilling edged
up on Monday on dollar inflows from the tourism and horticulture
sectors, while stocks were driven higher by gains in bank
shares.
    At the close of trade the shilling was quoted at 87.05/15, 
compared with Friday's closing rate of 87.10/20.
    The shilling had initially come under pressure from demand
for dollars by oil importers and firms paying their shareholders
abroad. But it recovered as dollars later flowed into the
market.
    "The were good inflows, mainly from horticulture and
tourism. The two sides were well matched, but the pressure on
the shilling will increase in the week because there is strong
demand (for dollars)," said Andlip Nazir, a senior trader at I&M
Bank.
    Traders said part of the demand was from Kenyan firms that
have a wide array of foreign shareholders who have their annual
dividends paid in hard currency.
    "It will be under pressure for the rest of the month, and
then we will see it do better once the dividend season is out,"
said a trader with a leading commercial bank.
    On the benchmark NSE 20 Share Index, Kenya
Commercial Bank led shares higher as foreign investors
bet on a continuation of strong earnings. In April, the bank
reported a 31 percent rise in first-quarter pretax profit.
    The bank's shares rose to 49 shillings from 48.75 shillings.
    Safaricom also gained, rising to 12.90 shillings
from 12.85 shillings as investors bought the stock ahead of its
results. The country's biggest telecoms operator, reported a
23.8 percent rise in annual core profits. 
    "There was a mixture of local and foreign investors in KCB
after its strong Q1 results, while for Safaricom, the main
driver was anticipation of strong results," said Ian Gachichio,
a research analyst at Kestrel Capital.
    Safaricom's earnings per share rose 29.55 pct to 0.57
shillings, the company said, adding that it had raised its
dividend to 0.47 shillings per share.
    On the secondary market, government bonds valued at 3.72
billion shillings were traded, compared with 325.1 million
shillings on Friday.
  
               ...........................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:
                                    
            
 

 (Reporting by James Macharia)

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