June 24, 2013 / 2:22 PM / 4 years ago

UPDATE 1-Kenyan shilling weakens, shares extend losses

* Central bank could sell dollars if shilling slides -
traders
    * Shilling seen weaker on fears of emerging markets rout
    * KCB, Equity Bank lead shares lower

 (Adds shilling's close, stocks slide)
    By Kevin Mwanza
    NAIROBI, June 24 (Reuters) - The Kenyan shilling 
extended its fall on Monday as importers bought dollars to meet
end-of-month payments for supplies, while shares dropped for the
second straight session.
    At the 1300 GMT market close commercial banks quoted the
shilling at 86.00/20 to the U.S. dollar, down from Friday's
close of 85.80/86.00.
    The shilling has lost 0.8 percent of its value since the
government announced plans for a capital gains tax in its June
13 budget. That coincided with a broader sell-off in emerging
market assets after the U.S. Federal Reserve said it planned to
wind down its bond-buying stimulus programme.
    "End-month demand for dollars is coming in," said John Muli,
a trader at African Banking Corporation, explaining the fall.
    "We might see some profit-taking at this level with
exporters selling dollars, that might support the shilling a
bit," he added. 
    The shilling is 0.1 percent firmer against the greenback
this year, helped by a rally in Kenyan assets in the run up to a
peaceful presidential election in March. The previous election
was marred by widespread violence.
    Traders said the central bank might sell dollars if the
shilling's depreciation gathered pace. The last sale was on May
29 after the shilling slid 1.7 percent over five sessions.
    "We cannot rule out a central bank intervention should the
depreciation become out of hand," said Bank of Africa in a daily
note.
    In the stock market, the benchmark NSE-20 share index
 fell 0.6 percent to 4,680.33 points. Volumes traded
nearly halved. 
    The index has lost about 6 percent in the sell-off that
began on June 6, but is still up 13.4 percent in 2013.
    "Trading was slow with the notable absence of both foreign
and local institutional investors, while retailers were active
on the sale side," said Faith Atiti, an analyst at NIC
Securities.
    Equity Bank, the country's largest by customers,
fell 3.1 percent to 31.50 shillings per share, while Kenya
Commercial Bank, the largest bank by assets, lost 3.2
percent to 37.50 shillings .
    In the debt market, bonds worth 2.55 billion kenyan
shillings ($29.69 million) were traded, down from 3.96 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 = 85.9000 Kenyan shillings)

 (Editing by Edmund Blair and Louise Heavens)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below