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3 years ago
UPDATE 1-Kenyan shilling gains, stocks end nine-day winning streak
September 4, 2014 / 2:47 PM / 3 years ago

UPDATE 1-Kenyan shilling gains, stocks end nine-day winning streak

* Shilling seen under pressure on scant dollar inflows
    * Stocks close lower, led by Safaricom, KCB

 (Adds shilling closing rate, stocks, bonds)
    By George Obulutsa
    NAIROBI, Sept 4 (Reuters) - The Kenyan shilling 
firmed slightly against the dollar on Thursday, partly due to
the central bank mopping up excess liquidity, while stocks edged
lower breaking a nine-day winning streak.
    The local currency was buoyed after the central bank mopped
up 7.6 billion shillings in excess liquidity from the money
markets using repurchase agreements at a weighted average rate
of 8.356 percent. It had sought to absorb 15 billion shillings.
    At 1300 GMT, commercial banks quoted the shilling at
88.60/70, compared with Wednesday's close of 88.70/80.
    Julius Kiriinya, trader at African Banking Corporation, said
the mop up had partially helped the shilling strengthen.
    A shortage of the local currency in the money market has
improved, with overnight lending rates falling since last week,
spurring a rise in dollar demand. 
    Traders however said that the shilling would still be under
pressure in coming days due to scant dollar supply.
    Kenya's tourism business, a top foreign exchange earner,
slid into crisis this year because of frequent deadly attacks
blamed on Islamists from neighbouring Somalia.
    Tea dollar earnings have also fallen due to an oversupply of
the commodity as a result of favourable weather in Kenya.    
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index closed 6.13 points lower at 5,157.15 points.
    Top-20 index heavyweights Safaricom and Kenya
Commercial Bank (KCB) Group led the stocks lower on
profit-taking after posting gains in recent days, said Virginia
Wairimu, research analyst at Suntra Investment Bank.
    Safaricom closed 1.4 percent lower at 13.20 shillings, while
KCB ended the session down 1.7 percent at 57.50 shillings. 
    Safaricom had risen after making an acquisition and winning
a lucrative government contract for a national surveillance
network, while KCB was buoyant on solid first half profits. 
    On the secondary market, government bonds valued at 4.43
billion shillings ($50.06 million) were traded, down from 5.5
billion shillings traded on Wednesday.
               ...........................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 = 88.5000 Kenyan shilling)

 (Editing by James Macharia)

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