By the 1300 GMT market close August 2, 2013, commercial banks quoted the
shilling at 87.30/50 per dollar, a level it has hovered around all this
week. Photo/FILE
The Kenyan shilling ended the week steady on Friday, underpinned by a liquidity squeeze. Shares edged lower for the third straight session.
By the 1300 GMT market close, commercial banks
quoted the shilling at 87.30/50 per dollar, a level it has hovered
around all this week.
"Being the beginning of the month, importers'
appetite for dollars is a bit down," said Duncan Kinuthia, head of
trading at Commercial Bank of Africa.
"The overnight (lending rate) has ticked up, but
as the government continues spending, then we could see liquidity come
into the market."
Kenyan demand for the US currency normally peaks
at the end of the month as importers, especially from the energy sector,
rush to meet payments for their supplies.
The weighted average interbank lending rate edged
up to 9.5374 per cent on Thursday, from 9.3777 per cent in the previous
session. The rate has risen for 10 straight sessions from 6.6810 per
cent on July 17.
The government plans to release up to Sh24 billion
($275 million) in development funds for its 290 constituencies this
month, which will boost liquidity in the market.
In stocks, the benchmark NSE-20 share index dipped 0.1 per cent to 4,777.12 points, held back by banking stocks.
Shares in Equity Bank, the country's largest bank by customers, dropped 0.8 per cent to Sh33 each, while Standard Chartered Bank was down 1 per cent to Sh300.
"Equity Bank's (half-year) performance was below
expectation. Investors are becoming sceptical of what other banks will
report," said Moses Waireri, an analyst at Sterling Investment Bank. On
Monday Equity Bank posted a 17 per cent rise in its first-half pre-tax profit.
In the secondary bonds market, debt worth Sh1.9 billion was traded, up from Sh1.2 billion previously.
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