Kenyan shares extend gains on earnings bets, shilling steady

By Kevin Mwanza

NAIROBI (Reuters) - Kenyan shares edged up for the seventh straight session on Wednesday ahead of firms' first half earnings, while the shilling was steady in cautious trading, after the central bank sold dollars in the previous two sessions.

The main NSE-20 share index inched up 0.2 percent to 4,778.88 points. The index has gained 4.4 percent in the last seven sessions and it is 15.8 percent up so far this year.

It had lost 8.2 percent in June when investors took profits on this year's rally after a peaceful election. The decline was fanned by the prospect of an easing of U.S. economic stimulus measures and concerns the government may bring back a capital gains tax.

Kenya Commercial Bank, the country's largest bank by assets gained 1.2 percent to finish at 41.25 shillings a share, while Equity Bank, the largest by customers, climbed 0.7 percent to 33.75 shillings per share.

In the foreign exchange market, commercial banks posted the shilling at 86.75/95 to the dollar by the 1300 GMT market close, barely changed from Tuesday's close of 86.70/90.

Traders said there had been caution due to expectations the central bank might sell dollars again as it did in the last two sessions after the shilling lost 2 percent in the first half of July, hit by low yields at home and unrest in Egypt, one of the biggest buyers of Kenyan tea.

"Monetary authorities have shown they're keen to prop up the shilling. That will keep the shilling supported below 87 for now," said a trader at one commercial bank.

In the debt market, weighted average yields on the 182- and 364-day Treasury bills crept up at a sale that was met by dismal demand.

In the secondary market, securities worth 1.55 billion shillings were traded, up from 1.25 billion shillings on Tuesday.

Source: http://news.yahoo.com/kenyan-shares-extend-gains-earnings-bets-shilling-steady-154339084.html

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