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UPDATE 1-Kenyan shares extend gains, shilling stuck in range
June 24, 2014 / 3:32 PM / in 3 years

UPDATE 1-Kenyan shares extend gains, shilling stuck in range

* Investors pile into Diamond Trust ahead of cash call
    * Tight liquidity supports Kenyan shilling

 (Adds shares, closing rate)
    By Duncan Miriri
    NAIROBI, June 24 (Reuters) - Kenyan shares extended a
winning streak to five days on Tuesday, racking up gains on the
back of last week's successful Eurobond issue, while the
shilling weakened within a recent range.
    The benchmark NSE-20 share index added a quarter of
a percentage point to close at 4,856.79 points.
    Top gainers on the bourse included Diamond Trust Bank
. Analysts attributed Diamond's 3 percent jump during
the session to the closure of the share register for a cash call
that was priced last week. It closed at 275 shillings per share.
    Shares of Diamond Trust have surged from 244 shillings last
Wednesday after it set the price of the one for 10 rights issue
at 165 shillings per share, offering a 32 percent discount.
    "The deadline to get on the register was 3 p.m. today so
investors were rushing to buy the shares," said Ian Gachichio, a
research analyst at Kestrel Capital.
    He added the bank had a solid business spread in most of
east Africa, boosting its appeal to investors. 
    The issuance of Kenya's debut Eurobond for $2 billion last
week helped boost sentiment on the markets.
    On the foreign exchange market, the shilling finished the
day at 87.45/55 per dollar, slightly down from Monday's close of
87.30/40, but within its recent range of 87.20-87.80.
    Traders said tight liquidity in the money markets was
offering some support, despite the modest slide.
    "It is expected to be well supported because liquidity has
been tight in the last two days," said a senior trader with a
leading commercial bank.
    The average interest rate on the overnight borrowing market
for banks has more than doubled to above 6 percent since June 13
as firms paid their quarterly taxes. 
    In the debt market, bonds worth 2.59 billion shillings were
traded, up from a volume of 456 million shillings in Monday's
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
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 (Editing by Gareth Jones)

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