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UPDATE 1-East African Breweries nudges Kenyan shares lower, shilling steady
February 14, 2014 / 2:35 PM / 4 years ago

UPDATE 1-East African Breweries nudges Kenyan shares lower, shilling steady

* EABL is Kenya's second most capitalised stock
    * Duty imposed on popular beer hurt EABL sales

 (Recasts, adds EABL update)
    By Drazen Jorgic
    NAIROBI, Feb 14 (Reuters) - East African Breweries dragged
Kenyan shares lower after reporting disappointing first half
profits, while the shilling ended steady.
    The main share index lost 0.02 percent to 4,787.56
points.
    East African Breweries, the second-most valuable company on
the Nairobi bourse, fell 2.4 percent after reporting an 85
percent decline in the sales volume of Senator Keg beer, one of
its main products. Half-year pre-tax profit was up 5 percent.
    "The market didn't take the results on EABL too well," said
Augustine Misoka, a stocks trader at Sterling Investment Bank.
    EABL, controlled by Britain's Diageo Plc, has been
hit by a new duty on Senator Keg, which caters for the lower end
of the market.
    "That really shows that in terms of growth... there might be
some slow sales going forward and investors didn't take that
very well," Misoka added.
    The fall in EABL shares was cushioned by a slight rise by
Safaricom, the bourse's biggest stock by market
capitalisation, which increased 0.8 percent to 11.80 shillings.
    In the foreign exchange market, the shilling was posted at
86.30/50 per dollar by the 1300 GMT close, compared with
Tuesday's close of 86.30/40.
    Traders said the shilling was expected to strengthen due to
dollar inflows from investors interested in buying a 15-year
Treasury bond, worth up to 10 billion shillings
($116 million), due to be sold on Feb. 19.
    "We expect some inflows (due to the bond sale)," John Muli,
trader at African Banking Corporation, said.
    Another trader at a commercial bank said the currency would
also get a reprieve from tighter shilling liquidity next week
when tax payments to the government are due, rendering central
bank liquidity mop-ups unnecessary at the moment.
   On the secondary market, government bonds valued at 175
million shillings were traded, down from 1.25 billion shillings
on Thursday.
               ...........................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 = 86.4000 Kenyan shillings)

 (Additional reporting by George Obulutsa; editing by George
Obulutsa/Ruth Pitchford)

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