imageNAIROBI: Kenya's main share index rose on Tuesday to record a 19.2 percent gain for 2013, helped by east Africa's biggest telecoms operator, Safaricom, which doubled in price during the year.

The Kenyan shilling, which is up 0.2 percent against the dollar in 2013, was a touch firmer on Tuesday. At 1300 GMT, commercial banks quoted the shilling at 86.20/40, from Monday's close of 86.30/50.

The benchmark NSE-20 Share Index rose 0.8 percent on the day to finish the year at 4,926.97 points, having reached record highs several times in 2013.

Analysts say Kenya's index, like many other African bourses, has benefited from multi-billion dollar pension funds and other global investors increasing their allocation to the continent and its expanding economies.

Aly Khan Satchu, an independent analyst, said this trend had created demand for "big cap, blue-chip African equities".

Safaricom, the bourse's most capitalised stock by some distance, soared 115 percent during the year. Several Kenyan banks which have an expanding foothold in fast-growing east African economies also saw their share price rise.

Kenyan equities, which gained 29 percent in 2012, also benefited from a smooth general election in 2013, in contrast to a disputed 2007 poll when ethnic violence crippled trade and brought the economy to its knees.

"Lower interest rates and lower inflation have also helped to make Kenyan equities attractive," added Satchu, who also invests money on behalf of private investors. "I foresee a similar performance next year."

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