* Equity and stock exchange's shares buoy stocks
(Adds shilling, stocks closing rates)
NAIROBI, Sept 18 (Reuters) - The Kenyan shilling
However, traders said the shilling, which has lost 2.6 percent to the dollar so far this year, remained under pressure from importers seeking dollars and was likely to weaken again in the face of a shortage of hard currency inflows.
The shilling closed at 88.90/89.00 to the dollar, a level it traded at last week. Earlier in the session, the shilling hit a low of 89.45/89.55, a level it last reached in December 2011.
"The central bank came in and sold dollars, not sure how much, but it was big for this kind of recovery," said a trader at a leading commercial bank.
The local currency of East Africa's biggest economy has been under pressure since last week due to dollar demand from importers, against scant hard currency inflows.
The central bank said in a statement that it was able to cope with any shocks to the economy after accumulating foreign exchange reserves totalling $7.4 billion - worth 4.85 months of import cover - over the past three weeks.
Three weeks ago the bank had reserves worth $6.3 billion, enough to cover 4.13 months of imports. The bank said the additional $1.1 billion was from receipts for Kenya's maiden sovereign bond issued in June.
"This gives the Central Bank and the economy a cushion to weather any shocks," the bank said.
Kenya's tea and tourism sectors, leading foreign exchange earners, have faced difficult times this year, causing a shortage of hard currency.
A global glut has hurt tea prices, while tourists have avoided the country because of frequent deadly attacks blamed on Islamists from neighbouring Somalia.
On the Nairobi Securities Exchange, the main NSE-20 Share Index
The big gainers were Equity Bank
Agnes Achieng, research analyst at Sterling Investment Bank, said Equity shares were in demand due to its plans to launch its telecoms services arm soon to expand its market share in the fast-growing mobile phone-based financial services market.
Equity has teamed up with the country's second-largest telecoms firm, the local arm of Bharti Airtel
"There is a lot of demand for the exchange's shares after the initial public offer was oversubscribed," said Achieng.
She said the appetite for the stock has kept its share price rising since it was listed and started trading on Sept. 9.
On the secondary market, bonds valued at 2.09 billion shillings ($23.5 million) were traded, up from 1.95 billion shillings on Wednesday.
(Reporting by James Macharia; Editing by Ruth Pitchford) ((james.macharia@thomsonreuters.com; Tel: +254 204 991 232 ; Reuters Messaging: james.macharia.thomsonreuters@reuters.net))
Keywords: KENYA MARKETS/




















