UPDATE 1-Kenyan shilling hits 7-month high, shares inch up

Wed Apr 10, 2013 8:16pm IST

Stocks

   

* Corporates withhold dollar orders, expect firmer shilling
    * Shilling seen reaching it 84.00 psychological level
    * Foreign investors stream back into stocks

 (Adds markets close, stocks)
    By Kevin Mwanza
    NAIROBI, April 10 (Reuters) - The Kenyan shilling hit
a seven-month high on Wednesday in the first day of trading
after incoming President Uhuru Kenyatta was sworn into office in
a peaceful handover of power, and shares inched up.
    Traders said corporate clients saw further gains ahead for
the currency, reflecting relief at the smooth political outcome.
Banks sold dollars as corporate demand for the U.S. currency
remained subdued, traders said. 
    The shilling strengthened 0.4 percent to 84.25/35 at the
1300 GMT closer, a level it last reached on Sept. 9, 2012.
Markets were closed on Tuesday when Kenyatta was sworn into
office.
    "Corporate demand is not there, that's why we're seeing more
interest in selling dollars," said Duncan Kinuthia, head of
trading at Commercial Bank of Africa. He said corporate clients
anticipated further gains for the shilling.
    The shilling has rallied 1.8 percent since the March 4 vote
following a largely peaceful vote won by Kenyatta, the east
African country's richest man and son of its founding president.
   
    The Supreme Court dismissed a challenge to his victory and
there was no repeat of the nationwide violence that followed an
election in 2007.
    "The doom and gloom had been priced into the shilling before
the election and that's correcting now," Kinuthia added.
    Nevertheless, the outlook is clouded by Kenyatta's looming
trial for crimes against humanity charges at the International
Criminal Court. 
    Traders said technical analysis suggested the shilling,
which is 2 percent stronger so far this year, could target 84.00
in coming sessions.
    At the Nairobi Securities Exchange, the main NSE-20 share
index inched up 0.2 percent to 4,990.04 points as
foreign investors streamed back to the bourse.
    "Stocks continued to register gains driven by renewed
foreign support after the elections," said Faith Atiti, an
analyst at NIC Securities.
    Safaricom, the country's leading telecoms provider
and the most traded stock, gained 1.6 percent to 6.45 shillings
per share ahead of full-year ended March results. It touched a
4-1/2-year high of 6.60 shillings during the session.
    In the debt market, the weighted average yield on 364-day
Treasury bills on sale on Wednesday fell to 12.504 percent,
while the yield on 182-day bills also dipped to 10.827 percent.
 
    In the secondary debt market, bonds worth 3.1 billion
shillings ($36.6 million) were traded, up from 2.4 billion
shillings traded on Monday.
               ...........................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 = 84.6250 Kenyan shillings)

 (Editing by Kevin Mwanza)
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