Reuters logo
UPDATE 1-Kenyan shilling holds steady, shares edge up
October 23, 2013 / 2:58 PM / 4 years ago

UPDATE 1-Kenyan shilling holds steady, shares edge up

* Liquidity tightens due to tea bonus payments
    * Shilling seen firmer on tighter liquidity
    * Carbacid soars on higher dividend, bonus issue

 (Adds market close, stocks)
    By Kevin Mwanza
    NAIROBI, Oct 23 (Reuters) - The Kenyan shilling was
steady on Wednesday, underpinned by tightening liquidity in the
money markets, while gas firm Carbacid led stocks
higher on stronger dividends.
    At the 1300 GMT market close, commercial banks posted the
shilling at 84.70/80 to the dollar, barely changed from
Tuesday's close of 84.70/90.
    Traders said liquidity had tightened due to this week's
annual payments of bonuses worth 51.3 billion shillings ($605.7
million) to tea farmers.
    Tea bonuses, usually paid to small-scale farmers in
mid-October, shift liquidity to a few big banks used for
disbursements, leaving other banks with little liquidity.
    Tight liquidity supports the local currency by making it
slightly more expensive for banks to hold long dollar positions.
    The weighted average interbank rate rose to 11.1241 percent
on Tuesday from 11.0672 percent previously, having risen
gradually from 6.9383 on Sept.17. 
    Traders said they expected the shilling to firm towards a
four-month high of 84.50, last touched on Oct. 8, before the end
of this week if liquidity remained tight.
    "I don't think it will improve soon because on Monday we
expect 16 billion shillings to go out in bond payments," said
Nahashon Mungai, a trader at Kenya Commercial Bank.
    Payments for a 12-year infrastructure bond auctioned this
month are due on Oct. 28. 
    In stocks, the benchmark NSE-20 share index edged
up 0.2 percent to 4,953.84 points, while the Nairobi All Share
Index gained 0.4 percent to 131.56 points.
    Shares in Carbacid soared 58.6 percent to 230 shillings, a
day after it said it would carry out a one for every two bonus
share issue and share split as it reported a 19 percent rise in
full-year pretax profit to 635 million shillings.
 
    "Investors are looking to cash in on that (bonus) and a
total dividend of 6 shillings," said Daniel Kuyoh, an analyst at
Kingdom Securities. Carbacid paid a dividend of 5 shillings a
share last year.
    In the debt market, the yield on the 364-day Treasury bills
rose to 10.830 percent at auction, from 10.792 percent last
week, while that on the 182-day bills climbed to 10.487 percent
from 10.453 percent, on low demand. 
    In the secondary debt market, government bonds worth 872
million shillings were traded, down from 895 million shillings
traded 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 = 84.7000 Kenyan shillings)

 (Editing by James Macharia and Alison Williams)

Our Standards:The Thomson Reuters Trust Principles.
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