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UPDATE 2-Kenyan shares bounce after repeat presidential election
October 27, 2017 / 1:38 PM / 25 days ago

UPDATE 2-Kenyan shares bounce after repeat presidential election

 (Adds markets close, dollar bonds)
    By Duncan Miriri
    NAIROBI, Oct 27 (Reuters) - Kenyan shares headed higher on
Friday after the presidential election rerun left some investors
satisfied that the country's political institutions were
continuing to function for now.
    The benchmark NSE20 index jumped 1.27 percent and
the broader all share index rose by 1.11 percent.
    In the foreign exchange market, the shilling edged up
to trade at 103.65/75 per dollar in the last hour of trading,
after opening at 103.85/95, its lowest level since mid-August.
    Kenyan assets have been pummeled since the beginning of
September when the Supreme Court nullified the initial Aug. 8
presidential vote over procedural irregularities and ordered a
re-run. 
    The pressure increased after opposition leader Raila Odinga
withdrew from the re-run and demanded a fresh 90-day electoral
cycle, complete with fresh nominations. 
    "We were expecting a bump once the election took place
irrespective of whoever wins," said Raymond Kipchumba, a
research analyst at Nairobi-based ABC Capital.
    "As long as there was a form of an election taking place and
either a government almost ready in place to take over or
continue, we were expecting foreigners to come back."
    The political crisis had also cut trading volumes at the
bourse with weekly traded volumes of large cap stocks like
telecoms operator Safaricom halving to 30 million
shares, Kipchumba said.
    Traders attributed the shilling's drop earlier in the week
to nervous foreign investors exiting shilling assets ahead of
the poll and some importers buying their dollar requirements in
advance. 
    The shilling sank to 103.85/95 per dollar on Tuesday, its
lowest since Aug. 14. Markets were closed on Wednesday and
Thursday for the election, which failed to happen in some
opposition strongholds due to violence.
    "It is more or less status quo for the shilling until the
numbers (election results) are announced," said a currency
trader at a commercial bank.
    A partial tally by the private Daily Nation newspaper showed
President Uhuru Kenyatta had won over 96 percent of the votes
counted so far from Thursday's repeat vote.
    The election board postponed voting by 48 hours in four
western counties where pro-opposition youths clashed with the
police. 
    The run-up to the repeat election was marked by opposition
protests, creating fears of violence a decade after 1,200 people
were killed in ethnic fighting that followed a disputed
presidential election.
    The nervousness was reflected abroad where Kenya's
dollar-denominated bonds fell by nearly half a cent on Friday.
The drop was attributed to a low voter turn out that could
undermine the election.
    The 2019 issue fell as much as 0.45 cents to
102.35 cents in the dollar while the 2024 bond
lost the same amount to hit a low of 102.35 cents, according to
Thomson Reuters data. 
    
               ...........................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-25 Share Index
         .................................NSE All Share Index
             ...........................FT NSE Kenya 15 Index
             .......................... FT NSE Kenya 25 Index
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