Bargain hunters help extend gains in Kenyan shares

   
Kenyan shares rose for the third straight session on Friday lifted by investors picking up stock
they considered cheap after a bear run, while the shilling held steady.

CBK Governor. Ndung'

    The benchmark NSE-20 share index rose 0.7 percent to 4,677.60 points. The index has recovered from a two-week slide as investor booked gains on the half-year earning results season.
    "This is a correction after prices fell to over-sold positions.
We are seeing some good foreign investor interest," said Faith Atiti, an analyst at NIC Securities.
    Kenya Airways, one of Africa's leading airlines, rose 1.6 percent to 9.25 shillings a share, while cement maker Bamburi  climbed 1.5 percent to 205 shillings.
    In the foreign exchange market, the shilling was posted at 87.30/50 per dollar at the 1300 GMT market close, barely changed from Thursday's close of 87.35/55.
    Traders said they expected the currency to firm slightly because of banks selling dollars due to sluggish demand from importers for greenbacks early in the month.
    "The shilling has a little more room to strengthen as dollar demand during the beginning of the month is always limited," said Bank of Africa in a daily note.
    The shilling has moved little since the central bank left its key interest rate unchanged at 8.50 percent on Tuesday, with inflation expected to keep rising after lawmakers widened the bracket of goods subject to value-added tax.
    The bank absorbed 15 billion shillings ($171.5 million) in excess liquidity using repurchase agreements on Friday.