UPDATE 1-Steady Kenya shilling seen firming, shares fall further

Fri Nov 30, 2012 2:30pm GMT

Quotes

   

* Shilling could gain on remittance, tourism inflows
    * Profit takers weigh on bourse


    By Kevin Mwanza
    NAIROBI, Nov 30 (Reuters) - The Kenyan shilling ended steady
versus the dollar on Friday and was expected to firm next week,
helped by remittances and tourism inflows, while shares fell.
    Commercial banks quoted the shilling at 85.80/86.00 per
dollar at the 1300 GMT market close, barely changed from
Thursday's close of 85.85/95.
    "We normally see a pick-up of tourism flows and diaspora
remittances which normally supports the shilling, so my view is
it will trade stronger in December at 85.50/86.00," said Dickson
Magecha, a trader at Standard Chartered Bank.
    "We have a few corporates who have closed for Christmas,
especially manufacturers, who were major buyers of dollars."
    The shilling, which is about 1 percent weaker versus the
dollar in 2012, has been supported by the central bank's regular
absorption of liquidity from the banking sector using repurchase
agreements. 
    Traders said, however, falling commercial bank lending rates
in the wake of a 700 basis-point drop in the central bank rate
since July posed a downside risk to the currency as it makes it
cheaper for importers to access credit.
    They said lower inflation pointed to a further drop in
interest rates. The inflation rate fell to 3.25
percent in November from 4.14 percent a month
before. 
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index fell for a fourth straight session by 0.7 percent
to 4,083.52 points.
    "Investors out to make profits on some counters are selling
to realise those gains," said Rufus Mwanyasi, an analyst at
Tsavo Securities.
    The index has risen 28 percent this year, lifted by a
re-allocation of assets after yields fell in the debt market.
Investors also bet on firms performing better this year as
interest rates drop.
    Sugar grower and miller Mumias dropped 4.8 percent
to 4.85 shillings a share, a seven-month low, as investors
exited the stocks on concern that falling international prices
of the commodity will hit its earnings.
    In the debt market, government and corporate bonds worth 1.2
billion shillings were traded, down from 1.5 billion shillings
on Thursday.  
               ...........................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:
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