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UPDATE 1-Kenya shares extend rally to year high
July 25, 2012 / 2:49 PM / 5 years ago

UPDATE 1-Kenya shares extend rally to year high

 * Debt auction seen offering further support to shilling
 * Safaricom shares lift bourse higher

 (Recasts with markets close, stocks)
 By Kevin Mwanza
 NAIROBI, July 25 (Reuters) - Kenyan stocks rallied for a
sixth session lifted by the country's leading mobile operator,
Safaricom, while the shilling held steady
against the dollar.
 The Nairobi Securities Exchange's benchmark NSE-20 Share
Index rose 0.8 percent to 3,878.49 points, a new
one-year high, and the sixth straight session of gains.
 Safaricom gained 2.6 percent to 3.95 shillings as investors
bet that the firm will post better performance in the first half
of its financial year as reports indicated a 16 percent growth
in mobile phone subscribers in the country. 
 "Despite losing some market share, Safaricom's revenue has
remained robust due to their aggressive pricing structure.
People expect them to perform better vis a vis last year," said
Brenda Kithinji, an analyst at Standard Investment Bank.
 Shares in Equity Bank, the biggest bank by
customer terms, rose 2.3 percent to 22.75 shillings, while Kenya
Commercial Bank, the country's largest bank by assets,
added 1 percent to 24.25 shillings. The banks are scheduled to
release their half year financial results on Thursday.
 On currency markets, commercial banks quoted the shilling at
84.20/30, barely changed from Tuesday's close of 84.20/40.
 The Kenyan central bank will auction a re-opened 5-year
Treasury note and a 10-year Treasury bond 
on Wednesday, aiming to raise a total of 10 billion shillings
($118.4 million). It will also offer 182-day T-bills worth 3
billion shillings.
 "The market is awash with liquidity from maturing debt. This
will be reinvested into the bond auctions today, which could be
oversubscribed," said Robert Gatobu, a trader at Bank of Africa.
 The central bank drained 1 billion shillings in excess
liquidity from the market using repurchase agreements and Term
Auction Deposits, as it has done regularly over the past year,
which offered further support for the local currency. 
 It had received bids worth 5.35 billion shillings.
 The shilling has gained more than 1 percent against the
dollar this year, supported by the central bank's tight monetary
policy.
 Traders said commercial banks could shift their attention
back to the debt market after yields rose steadily in recent
weeks, while returns on Term Auction Deposits came down.
 In the bonds market, government and corporate bonds worth
2.4 billion shillings were traded, up from 1.6 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 = 84.4500 Kenyan shillings)

 (Editing by George Obulutsa. Editing by Jeremy Gaunt.)
 

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