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UPDATE 1-Kenyan shilling steady vs dollar, shares inch up
January 31, 2013 / 3:26 PM / 5 years ago

UPDATE 1-Kenyan shilling steady vs dollar, shares inch up

* Shilling seen weaker on importers' dlr orders
    * Shares seen subdued ahead of national elections

 (Adds markets close, stocks)
    By Kevin Mwanza
    NAIROBI, Jan 31 (Reuters) - The Kenyan shilling held
steady against the dollar on Thursday, unmoved by data showing
inflation rising for the first time in 13 months, while shares
inched up for a second session.
    The inflation data, which was published around 15 minutes
before the close of trading, showed the rate rose to 3.67
percent in January, from 3.20 in December. 
    Kenya's central bank has been reducing interest rates
steadily but a turn up in inflation may provide the backdrop for
policymakers to pause with further cuts, analysts say.
    A Reuters poll of 13 analysts and traders had returned a
consensus median forecast of 3.35 percent inflation rate.
 
    The shilling was posted at 87.45/65 per dollar at the 1300
GMT market close, barely changed from Wednesday's close of
87.50/70.
    "We expect volatile trading to continue due to importers'
(dollar) demand," said Peter Mutuku, head of trading at Bank of
Africa.
    The shilling has dropped 1.7 percent against the dollar this
year, pressured lower by importers stocking up on dollars ahead
of national polls on March 4. 
    The last elections in 2007 were followed by violence in
which 1,200 people were killed and hundreds of thousands driven
from their homes. The nationwide chaos convulsed the economy and
sent the shilling spiralling lower.
    Analysis of the shilling's seven-day and 14-day weighted
moving averages suggests it is on a weakening trend for the near
term.
    In stocks, the main share index inched up for the
second straight session, up 0.1 percent to 4,416.60 points.
    "The market is entering a lull period ahead of the
elections. It will gain at a slower pace since local investors
are selling while foreign investors are buying," said Moses
Waireri, an analyst at Genghis Capital.
    While some market players forecast cautious trading in the
weeks ahead of the election, others expect the weak economic
outlook in major Western economies to help keep interest in the
Kenyan bourse strong.
    Safaricom, the country's leading telecoms operator
and one of the most traded stocks on the bourse, gained 2.8
percent to 5.45 shillings a share.
    In the debt market, the yield on Kenya's 91-day Treasury
bills rose for the first time in ten weeks to 8.164 percent at
auction on Thursday, from 8.036 percent last week.
 
    Bonds worth 962 million shillings were traded on the
secondary debt market, up from 925 million shillings on
Wednesday.
               ...........................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 Rosalind Russell)

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