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UPDATE 1-Kenyan shares edge up, shilling steady in tight liquidity
August 5, 2013 / 3:18 PM / 4 years ago

UPDATE 1-Kenyan shares edge up, shilling steady in tight liquidity

* Equity, Co-operative bank lead shares up
    * Tight liquidity supporting shilling

 (Recasts to lead with stocks, markets close)
    By Kevin Mwanza
    NAIROBI, Aug 5 (Reuters) - Kenya's main share index 
crept up for the first time in four sessions on Monday, lifted
by banks, while the shilling held steady, helped by tight
liquidity.
    The NSE-20 share index added 0.1 percent to 4,783.40 points.
    Shares in Co-operative Bank rose 1.6 percent to
16.35 shillings, while Equity Bank the country's
largest bank by customers, climbed 0.8 percent to 33.25
shillings.
    "There is a demand overhang on financial services stocks
indicative of bargain hunters taking positions," said Ronald
Lugalia, a research analyst at Afrika Investment Bank.
    In the foreign exchange market, the shilling was posted at
87.30/50 to the dollar at the 1300 GMT market close, a level it
hovered around all of last week.
    Traders said supply of the local currency had tightened in
the market, making it more expensive for banks to hold long
dollar positions and offering support to the shilling.
    "Until the government starts spending on development
projects, liquidity will remain tight," said Julius Kiriinya, a
trader at African Banking Corporation.
    The weighted average interbank lending rate edged up
to 9.5927 percent on Friday from 9.5374 percent in the previous
session. The rate has risen for 12 straight sessions from 6.6810
percent on July 17.
    Government spending slowed before March's parliamentary
election, but with a new cabinet in place since May there are
plans to spend billions of shillings on development projects
outlined in the national budget, which traders say will boost
liquidity in the market.
    In the secondary bonds market, debt worth 1.7 billion
shillings was traded, down from 1.9 billion shillings on Friday.
 
               ...........................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 = 87.3500 Kenyan shillings)

 (Editing by Richard Lough and Stephen Nisbet)

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