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REFILE-UPDATE 1-Kenyan shilling firms, shares fall for fifth session
February 19, 2014 / 2:46 PM / 4 years ago

REFILE-UPDATE 1-Kenyan shilling firms, shares fall for fifth session

(Restores dropped letter in headline)
    * Shilling gains on bank dollar sales
    * Main share index down a fifth time

    By George Obulutsa
    NAIROBI, Feb 19 (Reuters) - The Kenyan shilling 
firmed slightly on Wednesday thanks to commercial banks selling
dollars to meet local currency-denominated tax payments, while
shares fell for a fifth straight session.
    At close of trade at 1300 GMT, commercial banks quoted the
shilling at 86.10/30 to the dollar, compared with Tuesday's
close of 86.20/30.  
    "It's just mainly a bit of interbank selling to meet tax
payments," a senior trader at one commercial bank said.
    Traders said earlier in the session the shilling was
expected to remain under pressure from importer demand as the
month drew to a close.
    "There is a bit of corporate (dollar) demand at this level.
It's demand-driven at the moment, and I feel by next week it
will be back up again, maybe to the 86.40 level," said Sheikh
Mehran, senior trader at KCB Bank Group.
    Importers typically seek dollars at the end of each month to
meet payment obligations. 
    "We expect the shilling to start taking a beating ...as we
approach the end of the month," Duncan Kinuthia, head of trading
at Commercial Bank of Africa, said.
    Traders said they forecast the shilling to trade in the
86.00 to 86.50 range in coming days.
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index closed 11.02 points, or 0.23 percent, lower at
4,786.18 points.
    Traders said some foreign investors were still selling as
they exited the market due to the lingering effects of a
sell-off in emerging markets brought about by the Federal
Reserve's cuts in U.S. monetary stimulus.
    "There has been a bit of foreign selling. There has been a
bit of pressure. We have seen especially the large caps being
particularly hit hard. It could be may be part of the easing
that we have been hearing globally," Eric Musau, research
analyst at Standard Investment Bank, said.
    Telecoms firm and market heavyweight, Safaricom,
which has been popular with foreign buyers, was down 1.3 percent
to close at 11.40 shillings a share.
    On the secondary market, government bonds valued at 648.8
million shillings were traded, down from 935 million shillings
at the previous session.
    At a primary sale on Wednesday, the weighted average yield
on a re-opened Kenyan 15-year Treasury Bond fell to 12.375
percent from 13.769 percent at the last sale in July, the
central bank 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 Toby Chopra)

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