The shilling was posted at 87.45/65 a dollar at the 1300GMT market close on Friday. FILE
By Kevin Mwanza (Reuters)
The Kenyan shilling firmed slightly on Friday as
banks cut back dollar positions before the weekend, while a bearish run
for shares extended into its fifth straight session.
Traders said the market was gearing up for the next central bank policy meeting on Tuesday. The shilling was posted at 87.45/65 a dollar at the 1300GMT market close, slightly stronger than Thursday's close of 87.55/75.
Duncan Kinuthia, head of trading at Commercial Bank of Africa, said he expected the shilling to trade in the 87.30-87.80 range up to the meeting and hold in the same range if interest rates were kept steady.
The central bank kept its key rate at 8.50 per cent in July to allow previous cuts to filter through the economy.
A Reuters survey of 16 economists taken over the past week forecast rates would stay on hold until at least the end of this year to counter rising inflation and pressure on the shilling.
In stocks, the benchmark NSE-20 share index fell 0.2 per cent to 4,697.75 points.
The index has lost 2.6 per cent this week pressured by profit-takers after a recent half-year earnings rally. It is still 14 per cent up so far this year.
Shares in retailer Uchumi led the losses on Friday, down 4.3 per cent to Sh19.15 each. The company has been a big beneficiary of a growing middle class in the country, like the rest of sub-Saharan Africa.
In the secondary bonds market, debt worth Sh2.2 billion was traded, up from Sh1.4 billion previously.
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