UPDATE 1-Kenya shilling steady vs dollar, stocks down

Mon Apr 16, 2012 2:36pm GMT
 

* Cbank's $60 mln repo fails to attract bids
    * Shilling seen supported by tax payments
    * Stocks edge down on low volumes, seen rising

 (Adds markets close, stocks)	
    By Kevin Mwanza	
    NAIROBI, April 16 (Reuters) - The Kenyan shilling 
pulled away from earlier losses to close steady against the
dollar on Monday aided by inflows from aid agencies and payments
for government securities, while stocks ticked down on low
trading volumes.	
    The Central Bank of Kenya sought to mop up 5 billion
shillings ($60 million) from the market through repurchase
agreements, the sixth straight session, but got no bids from
commercial banks holding on to their liquidity due to tax
payments by corporates. 	
    At the 1300 GMT market close, commercial banks quoted the
shilling at 83.10/20 per dollar, the same level it closed on
Friday.	
    "The shilling recovered on inflows from the NGO's
(Non-Governmental Organisations). The market is also short
because of T-bills and tax payments being paid today and
tomorrow," said John Muli, a trader at African Banking
Corporation.	
    The shilling had slipped earlier on banks buying dollars to
cover their short positions, unnerved by a rise in global risk
aversion over the euro debt crisis.	
    Renewed concerns over the euro debt crisis, as Spanish
government bond yields rose above 6 percent for the first time
this year, eroded investor appetite for riskier assets, such as
the shilling, pushing them lower against the greenback.
 	
    Traders said the central bank's continued repurchase
agreements in a bid to stabilise the interbank and corporate VAT
payments due later this week rate might also lend support to the
shilling.	
    Those tax payments, though, may dampen banks' appetite to
take part in the repo market.	
    "The central bank might continue mopping up liquidity, but
the banks may not be keen on bidding because of tax payments by
corporates this week," a trader at one commercial bank said.	
    The Central Bank of Kenya soaked up a total of 31.1 billion
shillings in repurchase agreements over the last five trading
sessions, helping push the interbank rate up to 13.8 percent on
Friday from a low of 10.3 percent on April 5. 	
    At the Nairobi Securities Exchange, the benchmark NSE-20
Share Index fell 0.4 percent to 3,443.94 point halting a
three-day winning streak at the bourse.	
    "Stocks went down on very small margins of shares traded. We
still believe the bull trend will continue in the second half
supported by firms' fundraising," said George Bodo, a trader at
Apex Africa Capital.	
    Apart from the ongoing Kenya Airways $250 million
cash call, a number of listed banks, including NIC Bank 
Diamond Trust Bank and Standard Chartered Bank
, are scheduled to float right issues this year.
 	
    Shares in sugarcane grower and miller, Mumias,
gained 2.1 percent following news of the appointment of a new
Chief Executive Officer.	
    On the fixed income market, government bonds worth 1.8
billion shillings were traded, up from 1.3 billion shillings on
Friday. The one-year bond was the most active at an average
yield of 15.4 percent.	
               ...........................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 = 83.2500 Kenyan shillings)	
	
 (Editing by Yara Abayoumy, Ron Askew)
 
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