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UPDATE 1-Kenyan shilling, shares hit 4-month highs on U.S. concerns
October 7, 2013 / 2:52 PM / 4 years ago

UPDATE 1-Kenyan shilling, shares hit 4-month highs on U.S. concerns

* Shilling firms as traders sell weakened dollar
    * Shares rise for the ninth straight session
    * Safaricom shares hit a new all-time high

 (Adds markets close, shares)
    By Kevin Mwanza
    NAIROBI, Oct 7 (Reuters) - The Kenyan shilling firmed
to a 16-week high on Monday as the budget standoff in the United
States encouraged dollar selling, while the main share index hit
a four-month high.
    The political impasse in Washington over the U.S. budget has
shut down non-essential government services just as the
government nears a $16.7 trillion debt borrowing limit, meaning
a probable default unless the debt ceiling is raised. 
    "We saw some offshore (investors) selling dollars, probably
to invest in local bonds and shares," said a trader at one
commercial bank.
    By the 1300 GMT close of the market, commercial banks quoted
the shilling at 85.10/30 to the dollar, a level not seen since
June 16, and 1 percent stronger than Friday's close of
85.95/86.15.
    The shilling has firmed 2.5 percent since mid-September,
lifted mainly by a liquidity squeeze in the money markets and
sustained portfolio inflows. 
    On the stock market, the main NSE-20 share index 
rose for the ninth straight session, adding 0.8 percent to close
at 4,881.44 points.
    "Activity has increased in recent days owing to intense
foreign investor demand for large caps," said Silha Rasugu, a
research analyst at Genghis Capital.
    Shares in east Africa's biggest telecoms firm Safaricom
 rose 2.2 percent to 9.10 shillings each. They touched
a new all-time high of 9.25 shillings during Monday's session.  
 
    Kenya Commercial Bank, the country's largest bank
by assets rose 3.7 percent to 48.75 shillings a share, while
Equity Bank climbed 3.6 percent to 35.50 shillings.
    In the secondary bond market, debt worth 2.06 billion
shillings was traded, down from 3.93 billion traded 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 = 86.0000 Kenyan shillings)

 (Editing by Duncan Miriri)

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