Reuters logo
UPDATE 1-Kenyan shilling firms, stocks down on profit-taking
December 17, 2014 / 3:41 PM / 3 years ago

UPDATE 1-Kenyan shilling firms, stocks down on profit-taking

* Bond sale buoys shilling
    * BAT, Safaricom lead stocks lower

 (Adds shilling closing rate, stocks, bonds)
    By George Obulutsa
    NAIROBI, Dec 17 (Reuters) - The Kenyan shilling 
firmed on Wednesday helped by hard currency inflows from
offshore investor seeking to buy government bonds, while stocks
fell on profit-taking.
    The shilling closed at 90.35/45 to the dollar, compared with
Tuesday's close of 90.55/65.
    "It must have been to lack of (dollar) demand... Also, some
interest on the bond side," Julius Kiriinya, a trader at African
Banking Corporation, said.
    The central bank auctioned a new two-year Treasury bond and
a re-opened 15-year bond worth a total 20 billion shillings
($221.24 million) on Wednesday, attracting 27 billion shillings
in bids from investors. 
    Traders said this supported the shilling as foreign
investors converted hard currency to buy the bonds.
    The central bank's action to mop up 500 million shillings
also buoyed the local currency. Absorbing excess liquidity makes
it relatively more expensive to hold long dollar positions,
which lends support to the shilling.
    Traders forecast the shilling - which has lost 4.8 percent
to the dollar so far this year - to trade in the 90.00 to 90.60
range against the dollar in the next few days.
    On the Nairobi Securities Exchange, the main NSE-20 Share
Index fell 0.85 percent 43.09 points to close at
5,048.21 points.
    Silha Rasugu, research analyst at Genghis Capital, said
there was profit-taking on various stocks that had made
significant gains over the past year.
    "With the risk of CGT (capital gains tax) coming in January,
there is a bit of precaution by investors, especially the longer
term investors, to secure gains they've made so far," he said of
the tax which takes effect on Jan. 1. 
    British American Tobacco was down 3.1 percent to
902 shillings, while the country's biggest telecoms firm
Safaricom shed 3.6 percent to end at 13.40 shillings. 
  
    On the debt market, government bonds worth 1.93 billion
shillings were traded up from 1.08 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 = 90.4000 Kenyan shillings)

 (Editing by James Macharia)

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