Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


NSE shares fall to seven-week low, shilling flat

30 August 2013, 10:36

Nairobi - Kenyan shares fell to a seven-week low on Thursday as investors booked more profits and turned to higher returns in the debt market, while the shilling was barely changed.

The benchmark NSE-20 share index fell for the fourth straight session, sliding 0.7 percent to 4,708.05 points.

"The half-year earnings were driving the market up, but now that they are behind us, demand for stocks has fallen," said Ronald Lugalia, an analyst at Afrika Investment Bank.

"There is also a slight shift towards bills and bonds."

Yields on Kenyan debt rose steadily for eight straight weeks due to tight shilling supply in the market, but started falling at auctions last week amid strong demand.

East African Breweries (EABL), the second-most capitalised stock on the bourse, tumbled 5 percent to 286 shillings. Its shares have slipped from the 360 shilling-mark in July when the company issued a profit warning.

Equity Bank, the country's largest bank by customers, fell 1.5 percent to 32.75 shillings a share.

In the foreign exchange market, the shilling was posted at 87.55/75 per dollar at 0958 GMT, a fraction weaker than Wednesday's close of 87.50/70.

Traders said the market was looking to a monetary policy meeting on Tuesday for direction.

"End-month demand (for dollars) is over now. Everyone is looking to see what the Monetary Policy Committee will say. From there we can have a clear perspective," said Robert Gatobu, a trader at Bank of Africa.

A Reuters survey of 16 economists taken over the past week forecast Kenyan interest rates would stay on hold until at least the end of this year to counter rising inflation and pressure on the currency.

Kenya held its benchmark lending rate at 8.50 percent in July, with the central bank saying it wanted to allow more time for earlier cuts to filter through the economy.

In the debt market, the yield on 91-day Treasury bills inched up to 10.474 percent at a heavily subscribed sale.

Debt worth 1.4 billion shillings was traded in the secondary market, down from 2.5 billion on Wednesday.

- Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
S Mbinya
Natural aphrodisiacs to boost lib...

It is advisable to take them before sex in order to achieve maximum benefit. Read more...

Submitted by
Jayne Zack
Raila has lost his remaining bull...

He added that Jubilee and Cord are like day and night. Read more...

Submitted by
Ben Wangui
Mudavadi of no value to CORD, say...

Leader of Majority in National Assembly, Adan Duale has said that ANC leader Musalia Mudavadi is of no value to CORD. Read more...

Submitted by
George Vodongo
Peter Kenneth will not run for Pr...

He clarified that he will not run for Presidency in 2017 as he supports Uhuru Kenyatta’s re-election bid. Read more...

Submitted by
Ben Wangui
Exams should not have political g...

He also said that school properties must not ‘carry any political portraits’. Read more...

Submitted by
S Mbinya
Matatu crew drugs female passenge...

Hours after the story was circulated on social media Sunday, the crew was traced at Dagoretti and arrested. Read more...