June 20, 2013 / 1:43 PM / 4 years ago

UPDATE 1-Kenyan shilling ends weaker, shares inch up

* Shilling seen weaker on fears of emerging markets rout
    * Shares supported by Treasury assurance on capital gains
tax

 (Adds markets close, stocks)
    By Kevin Mwanza
    NAIROBI, June 20 (Reuters) - The Kenyan shilling fell
on Thursday as importers bought dollars, anticipating further
losses in the local currency due to a wider sell-off in emerging
markets, while shares inched up for a second day.
    Commercial banks quoted the shilling at 85.65/85 to the
dollar at the 1300 GMT market close, 0.2 percent weaker than
Wednesday's close of 85.50/70.
    "In the face of falling interest rates and global risk
aversion, the shilling looks heavily exposed," said Joshua
Anene, a trader at Commercial Bank of Africa.  
    Emerging market assets, which have been a major beneficiary
of the cheap cash pumped out by major central banks, sold off
after the U.S. Federal Reserve signalled on Wednesday that it
would begin to slow the pace of stimulus later this
year. 
    The shilling has also been hurt by investors moving out of
Kenyan assets after the Finance Minister proposed a capital
gains tax during the budget reading last week.
    Traders said the shilling could weaken beyond the 86.00
level in days ahead, but a central bank keen to intervene to
sell dollars and mop up liquidity could support it. 
    In stocks, the benchmark NSE-20 share index added
0.2 percent to 4,713.39 points.
    Faith Atiti, an analyst at NIC Securities, said there was
renewed optimism among investors after the Treasury said on
Wednesday the proposed capital gains tax will not be in place
for at least the next six months. 
    Equity Bank, the country's largest by customers,
rose 4.7 percent to 33.75 shillings per share, while Kenya
Commercial Bank, the largest bank by assets, gained 2.6
percent to 38.75 shillings .
    In the debt market, bonds worth 1.9 billion shillings were
traded, down from 2.8 billion 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:
                                    
            
  ($1 = 85.6500 Kenyan shillings)

 (Editing by James Macharia/Catherine Evans)

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