Kenyan shares slip, shilling hovers near three-year lows

Kenya's benchmark index slipped 0.9 per cent yesterday with trading focused on banks, while the shilling held steady near three-year lows. The benchmark NSE 20 index fell 47.28 points to close at 5,078.74 points, heading towards what traders said was the psychologically important level of 5,000.

"Generally, we have not seen a lot of appetite in the market," said Eric Musau, an analyst at Standard Investment Bank. "Valuations have been looking a bit stretched.

Much of the trading was focused on banking shares. Barclays Bank of Kenya ended at Sh15.80, down from Sh15.85 with 1.1 million shares changing hands. Shares in Equity Bank and Kenya Commercial Bank were also heavily traded, although prices ended unchanged.

Analysts have said the market could find support at the 5,000-mark, but Musau said it could easily fall below that level. In the foreign exchange market, the shilling closed trading at 90.40/50 to the dollar, little changed on Wednesday's close of 93.45/55. The currency is hovering around record lows last seen in November 2011.