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UPDATE 2-Kenya shilling recovers on cbank support, shares steady
January 29, 2013 / 3:17 PM / 5 years ago

UPDATE 2-Kenya shilling recovers on cbank support, shares steady

* Cbank injects dollars for the 7th session this year
    * Oil sector dollar orders weigh on shilling
    * Investors await firms full-year earnings

 (Adds markets close, stocks)
    By Kevin Mwanza
    NAIROBI, Jan 29 (Reuters) - The Kenyan shilling 
recouped earlier losses to finish Tuesday's session flat, helped
by the central bank injecting an undisclosed amount of dollars
into the market, while shares were barely changed.
    The shilling slipped 0.4 percent within 30 minutes of
Tuesday's session starting, touching 87.80/88.00 per dollar, a
level it was last at on Jan. 5, 2012. 
    However, the local currency recovered to close the session
at 87.50/75, the same level it finished at on Monday, after the
Central Bank of Kenya sold dollars directly to commercial banks.
    The bank has now pumped dollars into the market in seven
different trading sessions this year to support the shilling,
which is down 1.8 percent against the greenback in 2013.
    Due to the interventions, Kenya's foreign exchange reserves
have dropped for four consecutive weeks to $5.177 billion last
Friday, from $5.396 billion on Dec. 28. 
    "With the central bank's interventions, 88.00 is still the
initial support level," said John Muli, a trader at African
Banking Corporation.
    The central bank has also been mopping up liquidity using
repurchase agreements (repo) since last year to support the
shilling. 
    On Tuesday, the bank received bids worth 8.7 billion
shillings ($99.3 million) for the 15 billion shillings it had
offered in repurchase agreements that day. It accepted all the
bids at a weighted average interest rate of 6.7 percent. 
    Traders said liquidity had also tightened in the market due
to government debt payments, with overnight interest rates on
the interbank market rising steadily over 11 straight sessions
to 6.67 percent on Monday. 
    At the Nairobi Securities Exchange, the benchmark NSE-20
Share Index fell 0.01 percent to 4,402.75 points, as
the market waited for firms to post their full year results.  
    "Prices on most counters seem to have stabilised. Investors
are positioning for company full-year earnings in February,"
said Faith Atiti, an analyst at NIC Securities.
    Safaricom, the country's leading telecoms operator
and one of the most traded stocks on the bourse, fell 1.9
percent to 5.30 shillings a share. It accounted for more than
half of Tuesday's traded volume.
    In the fixed income market, government bonds worth 973
million shillings were traded, up from 602 million 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 = 87.6250 Kenyan shillings)

 (Editing by Drazen Jorgic and Stephen Nisbet)

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