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UPDATE 1-Kenyan shilling falls on importers' orders, shares rise

* Sentiments on shilling remain bearish in coming days

* Shares rise on foreign buys into large cap stocks

(Adds markets close, stocks)

By Kevin Mwanza

NAIROBI, Oct 11 (Reuters) - The Kenyan shilling

weakened on Thursday, weighed down by importers in the telecoms and energy sectors buying the dollar, while the share index was lifted gai ns in major sto cks.

The shilling was trading at 85.10/30 to the dollar at the 1300 GMT market close, a touch weaker than Wednesday's close of 85.05/25.

"Sentiment still points to a weaker shilling. We've seen dollar demand from telecoms and energy guys while inflows are still low," said Solomon Alubala, head of trading at Co-operative Bank.

Technical analysis charts showed support for the shilling at 85.50 and traders said that if it fell below that level it could weaken to 86.00.

The shilling is up 0.1 percent against the dollar this year.

It had gained as much as 2 percent in the first half of the year due to a credit squeeze after the central bank held interest rates at an ultra high 18 percent for seven months. But it started falling in July after policymakers embarked on a monetary easing cycle as inflation fell into single digits.

The central bank mopped up 1.65 billion shillings ($19.4 million) in excess liquidity in the market on Thursday, more than the 1.5 billion shillings it had intended to sell.

At the Nairobi Securities Exchange, the main share index

rose 0.4 percent to 3,997 points led up by the top three market heavyweights East Africa Breweries

, Safaricom and Equity Bank .

The three stocks accounted for 63 percent of the days traded volumes.

"Foreign investors are targeting these counters because they are easy to trade in due to their share liquidity," said Johnson Nderi, an analyst at Suntra Investment Bank.

"Their cost of funding has come down, same as inflation and with a stable currency, Kenyan stocks have attractive positive returns."

East Africa Breweries gained 2.2 percent to 235 shillings, while Safaricom added 1.2 percent to close at 4.10 shillings.

Equity Bank, Kenya's biggest bank in terms of the number of account holders, rose 1.1 percent to 23.25 shillings.

In the debt market, the weighted average yield on the benchmark 91-day Treasury bills

rose at auction to 8.962 percent from 10.194 percent last week.

Government bonds worth 1.9 billion shillings ($22.3 million) were traded, up from 1.8 billion shillings 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

...........................African economic news

.................................NSE-20 Share Index

.................................NSE All Share Index

...........................FT NSE Kenya 15 Index

.......................... FT NSE Kenya 25 Index

SPEED GUIDES:

($1 = 85.1000 Kenyan shillings)

(Editing by James Macharia and Anthony Barker)

((nairobi.newsroom@reuters.com)(Tel: +254 20 2224717))

Keywords: KENYA MARKETS/