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3 years ago
UPDATE 1-Kenyan shilling steady, stocks a fraction higher
October 1, 2014 / 2:22 PM / 3 years ago

UPDATE 1-Kenyan shilling steady, stocks a fraction higher

* Shilling steady, still seen under pressure
    * Stocks up slightly, trade mixed

 (Adds shilling closing rate, stocks, bonds)
    By George Obulutsa
    NAIROBI, Oct 1 (Reuters) - The Kenyan shilling was
steady on Wednesday with demand for dollars being matched by
flows from tea exporters, while stocks closed a fraction higher.
    At 1300 GMT, commercial banks quoted the shilling at
89.25/45 to the dollar, compared with Tuesday's close of
89.30/40.
    Traders said there were some dollar inflows from tea
exporters and non-governmental organisations, which countered
the demand for the U.S. currency. 
    However, the shilling was expected to stay under pressure
due to persisting importer demand for dollars, while the trickle
of dollar inflows was expected to dry up.
    Traders said they forecast the shilling to trade at 89.00 to
89.50 to the dollar in coming days.
    Traders have said the expectation that the central bank
would sell dollars when the shilling nears 89.50 had so far kept
it from weakening beyond that level.
    "The last time we touched that level, we saw the central
bank come in. We don't know if they would do the same, so that
is giving it some support at the moment. And so we would have to
breach that for us to see further weakness," said Duncan
Kinuthia, head of trading at Commercial Bank of Africa.
    The bank most recently was in the market to sell dollars on
Sept. 19, and has said in the past it only entered the market to
sell dollars to smooth out any volatility.
    The central bank said it was in the money market on
Wednesday seeking to mop up 6 billion shillings in excess
liquidity. The bank often soaks up excess shilling liquidity, an
action that partly supports the currency by making it more
expensive to hold dollars.
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index inched 11.93 points or 0.2 percent higher to
close at 5,267.54 points.
    Gains by the market's index heavyweights were offset by
other equally heavily-traded stocks, with beer-maker East
African Breweries (EABL) and lender Equity Bank
 rising and falling respectively. 
    EABL rose 1.1 percent to 279 shillings, while Equity fell
1.9 percent to 50.50 shillings.
    "The index didn't go up by that much... it's been a mixed
day," said Eric Musau, research analyst at Standard Investment
Bank.    
    On the secondary market, government bonds valued at 4.31
billion shillings ($48.15 million) were trader compared with
4.34 billion shillings on Tuesday.
               ...........................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 US dollar = 89.3000 Kenyan shilling)

 (Editing by James Macharia and Robin Pomeroy)

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