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UPDATE 1-Kenyan shilling slightly weaker, main share index jumps
January 21, 2014 / 2:26 PM / 4 years ago

UPDATE 1-Kenyan shilling slightly weaker, main share index jumps

* Main share index closes at one and half month high
    * Shilling seen easing in coming sessions

 (Adds market close, stocks, bonds)
    By George Obulutsa
    NAIROBI, Jan 21 (Reuters) - The Kenyan shilling 
closed slightly weaker on Tuesday while the stock exchange's
main index rose 1 percent to a one and a half-month high, lifted
by telecoms firm Safaricom and banking stocks.
    The Nairobi Securities Exchange's main NSE-20 Share Index
 jumped 1 percent to finish at 5,075.06 points, a level
last touched on Dec.3, 2013 when it closed at 5,076.47 points.
    Analysts say the index was lifted by banking and insurance
stocks, which are expected to post improved full year 2013
results, and telecoms firm Safaricom, which usually 
trades the highest volumes on the exchange.
    Safaricom closed up 0.4 percent at 11.75 shillings a share
after jumping 2.5 percent to hit an all-time high of 12.00
shillings earlier in the session.
    Equity Bank,  the largest lender in east Africa by
 number of accounts, rose 3 percent to close at 33.00 shillings
a share after surging 4.7 percent to a four-day high of 33.50
shillings earlier in the day.
    "Today we saw quite some robust trading on Safaricom at a
new high. So that pushed the market index higher. We saw quite
some action on Equity (Bank) as well," Daniel Kuyoh, research
analyst at Kingdom Securities, said.
     "What we are seeing is that investors are moving towards
financial and insurance stocks ... people are anticipating the
financial stocks and insurance stocks will do quite well for
their full year results."
    In the currency market, commercial banks quoted the shilling
at 85.80/90 to the dollar at the 1300 GMT close of trade,
slightly down from Monday's close of 85.75/85.
    "There was slight demand which pushed the dollar to
85.95/86.05 then the market traded downwards," Andlip Nazir,
senior trader at I&M Bank, said.
    Traders said earlier on Tuesday they expected to see
increased activity as the month drew to a close, a time when
importers from sectors like energy and manufacturing come to buy
dollars.
    "The shilling remains marooned within the same levels as
yesterday as there's no remarkable activity from both the
corporate and interbank counters," Joshua Anene, a trader at
Commercial Bank of Africa, said.
    Traders said they expect the shilling to trade in the 85.60
to 86.20 in the days ahead. The shilling is 0.9 percent up
versus the dollar since the start of 2014.
    Technical analysis of the 14-day and 50-day weighted moving
averages show the shilling maintaining a strengthening bias in
the near term.
    On the secondary market, government bonds valued at 2.52
billion shillings were traded down from 3.29 billion shillings
traded a day earlier, the bourse said.
    
               ...........................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:
                                    
            
 
 (Editing by Tom Heneghan)

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