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UPDATE 1-Kenyan shares slide as earnings season ends, shilling steady
August 27, 2013 / 2:42 PM / 4 years ago

UPDATE 1-Kenyan shares slide as earnings season ends, shilling steady

* Heavyweights Safaricom, EABL lead shares lower
    * High debt yields support shilling

 (Recasts with closing stocks report, steady shilling)
    By Kevin Mwanza
    NAIROBI, Aug 27 (Reuters) - Kenyan shares dropped for the
second day on Tuesday as investors booked profits after a rally
on the back of first-half earnings, while the shilling held
steady against the dollar.
    The main NSE-20 share index fell 0.7 percent to
4,774.58 points, led lower by telecoms operator Safaricom
, the biggest capitalised stock on the market. The
index has slipped from a 10-week high of 4,851.54 on Aug. 18.
    "Post-earnings selling continues to drive prices, especially
 on large caps, lower," said Rufus Mwanyasi, an analyst at Tsavo
Securities.
    Shares in Safaricom ended 1.9 percent lower at
7.75 shillings each, down from an all-time high of 8.25
shillings that was reached earlier this month.
    East African Breweries (EABL), another
heavyweight, dipped 1.3 percent to 306 shillings. Its shares
have slipped from the 360 shilling-mark in July when it issued a
profit warning.
    In the foreign exchange market, the shilling was
steady on Tuesday, underpinned by high yields on local debt.
    Commercial banks quoted the shilling at 87.45/65 at the 1300
GMT market close, barely changed from Monday's 87.50/70.
    A trader at one commercial bank in Nairobi said end-of-month
importer demand for dollars was being offset by foreign
investors buying local debt to lock in the high yields on offer.
    Yields on Kenyan debt rose steadily for eight straight weeks
due to tight shilling supply in the market, but started falling
at auctions last week when more shillings were available.
 
    "The market is watching out for the central bank's rate
setting meeting in a week's time for clear direction," the
trader said.
    The central bank is set to hold its monetary policy meeting
on Sept. 3, at which traders expect it will keep its key rate at
8.50 percent to give time for previous rate cuts to filter
through the economy.
    On the secondary bond market, securities worth a total of
1.8 billion shillings ($20.6 million) were traded, up from 415
million shillings 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 = 87.5000 Kenyan shillings)

 (Editing by Edmund Blair)

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