CBK Weekly Bulletin

September 28, 2012

Highlights

The money market was liquid during the week ending September 26, 2012. The Central Bank sterilized the excess liquidity in the money market by mopping Ksh 12.57 billion through repo securities and Ksh 7.2 billion in term auction deposits against maturities of repo and term auction deposits securities held by commercial banks of Ksh 18.5 billion and Ksh 8.2 billion, respectively.

The average interbank rate increased to 7.19 percent during the week ending September 26, 2012 compared with 6.57 percent in the previous week.

The Kenya Shilling depicted mixed results against major international currencies in the week ending September 27, 2012, depreciating marginally against the US dollar, the Pound Sterling and the Japanese Yen but appreciating against the Euro.

The usable official foreign exchange reserves held by the Central Bank decreased from US dollar 5,190 million (equivalent to 4.13 months of import cover) as at September 20, 2012 to US dollar 5,163 million (equivalent to 4.11 months of import cover) in the week ending September 27, 2012.

The Government offered for sale Treasury bills worth Ksh 8.0 billion during the week ending September 28, 2012. A total of Ksh 3.4 billion was accepted out of Ksh 4.9 billion bids received.

Gross Government domestic debt increased by Ksh 57.0 billion to Ksh 915.8 billion on September 21, 2012, from Ksh 858.8 billion at the end of June 2012. During the week under review, gross government domestic debt decreased by Ksh 5.4 billion mainly on account of Treasury bonds.

Stock market recorded a strong performance in the week ending September 27, 2012, with gains in all market indicators except for the bonds market. Equities market was robust with all share indices registering gains. The NSE 20 Share Index gained 46.01 points; NASI was up 0.61 points, FTSE NSE 15 Index 0.10 points and FTSE NSE 25, 0.14 points. Supply of shares edged up 2.4 percent while market capitalization improved by 70 basis points.

The bonds market was inactive, falling by almost a third of the turnover recorded in the previous week.

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