25th July 2014
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Satchu's Rich Wrap-Up
Thursday 24th of July 2014

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0930-1500 KENYA TIME
Normal Board - The Whole shebang
Prompt Board Next day settlement
Expert Board All you need re an Individual stock.

The Latest Daily PodCast can be found here on the Front Page of the site

I had a very busy time this morning

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#Mindspeak Saturday July 26th at @InterConNairobi

I look forward to hosting @JoshuaOigara CEO Kenya Commercial Bank @KCBGroup

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The Sea Side Diani 161 days ago

"Anything that gets your blood racing is probably worth doing."
-- Hunter S. Thompson

"In San Francisco - life goes on. Hope rises and dreams flicker and
die. Love plans for tomorrow and loneliness thinks of yesterday. Life
is beautiful and living is pain. The sound of music floats down a dark
street. A young girl looks out a window and wishes she were married. A
drunk sleeps under a bridge. It is tomorrow."

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President Vladimir Putin: "Scenarios" which "Destabilize the Existing World Order" and Threaten Russia's Sovereignty
Law & Politics

However, ever more frequently today we hear of ultimatums and
sanctions. The very notion of state sovereignty is being washed out.
Undesirable regimes, countries that conduct an independent policy or
that simply stand in the way of somebody's interests get destabilised.
Tools used for this purpose are the so-called colour revolutions, or,
in simple terms - takeovers instigated and financed from the outside.

As for the terrible tragedy that occurred in the sky above Donetsk -
we would like once again to express our condolences to the families of
the victims; it is a terrible tragedy. Russia will do everything
within its power to ensure a proper comprehensive and transparent
investigation. We are asked to influence the militia in the southeast.
As I have said, we will do everything in our power, but this is
absolutely insufficient.

I also feel that we must think about additional steps to decrease the
dependence of the national economy and financial system on negative
external factors. I am not just referring to instability in global
markets, but possible political risks as well.


Opening two Fronts [The Pivot and now Ukraine/Russia] was in my
opinion ill advised.

The Overarching challenge to the US is China it is not Russia.

And to date I see no good reason why Putin would have ordered MH17 to
be shot out of the sky.

Whereas I can understand motivation from the other side.

A chessboard drenched in blood By Pepe Escobar


The MH17 tragedy may have been a horrendous mistake. But it may also
have been a desperate gambit by the Kiev minions of the Empire of

"There seems to be a strong possibility that international law has
been violated, in a manner that could amount to war crimes," Navi
Pillay, the UN high commissioner for human rights @Navi_Pillay


As the death toll on the 16th day of conflict topped 700 - more than
690 Palestinians and 34 Israelis plus one Thai agricultural worker -
Pillay told an emergency debate at the UN human rights council (UNHRC)
in Geneva that Israel had not done enough to protect civilians, citing
air strikes and the shelling of homes and hospitals.

Pilay also condemned Hamas and other militant groups for
"indiscriminate attacks" on Israel. Her comments were seen as a
warning to Israel about its obligations under international law. She
also called for an end to the blockade of Gaza - the underlying reason
for the conflict and an issue that would have to be tackled if any
ceasefire were to endure.

read more

Currency Markets at a Glance WSJ
World Currencies

Euro 1.3446 The dollar has strengthened 1.7 percent against the euro
this month and is at the highest level since November.
Dollar Index 80.84
Japan Yen 101.42
Swiss Franc 0.9032
Pound 1.7038
Aussie 0.9439
India Rupee 60.06
South Korea Won 1028.70
Brazil Real 2.2189
Egypt Pound 7.1535
South Africa Rand 10.5414

Euro versus the Dollar 3 Month Chart 1.3446 [grinding lower]


Dollar Index 3 Month Chart INO 80.84 [grinding higher]


"We're getting to the turning point for the dollar as we begin to see
an upward creep in front-end yields."

With the U.S.'s first rate increase since 2006 forecast for next year
and the Fed on course to end its currency depreciating bond-purchase
program by December, investors are becoming more optimistic about the
dollar. That's a turnaround from the first half, when the greenback
suffered its first back-to-back quarterly declines versus major
trading peers since 2011.

"We're in the early stages of a dollar bull cycle unfolding now," Paul
Mackel, the Hong Kong-based head of Asian currency research at HSBC
Holdings Plc


@IMFNews  IMF: The US economy will rebound in second half of 2014,
growth up to 3% for 2015


Economic activity in the U.S. accelerated in the second half of 2013,
but an unusually harsh winter conspired with other factors--including
an inventory correction, a still-struggling housing market, and slower
external demand--caused momentum to fade in early 2014, leading to a
contraction in growth of 2.9 percent in the first quarter.
Over the past few months, however, a broad-based improvement appears
to be unfolding as evidenced by stronger employment and industrial
production numbers. Looking ahead, activity is projected to accelerate
in the remainder of this year to well-above potential (in the 3-3 1/2
percent range), although the drag on growth from the first quarter
contraction will not be offset. This means growth for the year as a
whole will be a disappointing 1.7 percent. More positively, barring
unforeseen shocks, 2015 growth should accelerate to the fastest annual
pace since 2005, propelled by strong consumption growth, a declining
fiscal drag, a pickup in residential investment, and easy financial

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Commodity Markets at a Glance WSJ

Gold 1 month Chart INO 1296.08 [Trades poorly]


Gold for immediate delivery lost as much as 0.7 percent to $1,294.98
an ounce, the lowest since July 16, before trading at $1,295.92 by
2:32 p.m. in Singapore, according to Bloomberg generic pricing. The
metal has retreated for three days, and is on course for the first
back-to-back weekly drop since May.

Crude Oil 1 Month Chart INO 102.89 [Big Buy below a 100.00]


WTI for September delivery was at $102.86 a barrel on the New York
Mercantile Exchange, down 26 cents, at 3:22 p.m. Singapore time. The
contract increased 73 cents to $103.12 yesterday. The volume of all
futures traded was 20 percent above the 100-day average. Prices have
advanced 4.5 percent this year.

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Africa's urban food markets will increase fourfold by 2030, and small and unlisted companies setting out to supply them hold high-yield potential.

With increasing urbanisation and fast-growing middle classes, Africa's
urban food markets are expected to grow fourfold by 2030, according to
a World Bank study.

"There is a growing food gap between regional demand and supply, and
between regional supply and global demand.

read more

South Africa All Share Bloomberg +12.226% 2014

South Africa seeks to limit foreign land ownership - minister


"The principle is that foreign nationals should not own land in the
country but should have a long lease at a minimum of 30 years," land
and rural development Minister Gugile Nkwinti told reporters.

Nkwinti said the government was wary of applying the proposals
retroactively, however, on concerns that the constitutionality of the
bill could be challenged in court.

Real estate industry representatives spoke out against the proposal,
saying overall foreign investment in South African property was small.

"This is completely ill-conceived," said Andrew Golding, chief
executive of Pam Golding Properties. "Particularly when there is a
misconception that foreigners are pouring into South Africa and
pushing prices up."

Dollar versus Rand 1 Month Chart INO 10.5385


Vodacom First Quarter Sales Rise on Sub-Saharan Africa Data Boom


Data revenue soared 23 percent to 3.6 billion rand as the company's
active data customers increased 37 percent to 25.3 million.

"Data and the international businesses have once again been the
largest contributors to growth, and the entire business is seeing the
benefit of our sustained investment program," Chief Executive Officer
Shameel Joosub said in the statement.

Vodacom, which is 65 percent owned by Vodafone Group Plc, is expanding
its Internet and data services while adding small-to-medium sized
business customers to offset declining voice sales from its home
market, which is being squeezed by cuts in the rates it can charge for
ending calls on its network.

South Africa sales advanced 2 percent in the quarter, while
international mobile data revenue increased 51 percent to 636 million
rand as the company added customers in Tanzania, Mozambique, the
Democratic Republic of Congo and Lesotho.

Egypt Pound versus The Dollar 3 Month Chart INO 7.1532


Egypt EGX30 Bloomberg +26.26% 2014


Nigeria All Share Bloomberg +3.2316% 2014


Bombs in north Nigeria's Kaduna kill at least 82


Two bomb blasts in the north Nigerian city of Kaduna killed at least
82 people on Wednesday, officials said, in attacks that bore the
hallmarks of violent Islamist group Boko Haram.

A suicide bomber targeting a moderate Muslim cleric killed at least 32
of the cleric's congregation on a busy commercial road. Shortly after,
a second bomb blast killed 50 people in the crowded Kawo market on
Wednesday, a local Red Cross worker on the scene, who declined to be
named, told Reuters.

Thousands were gathered for prayers with Sheikh Dahiru Bauchi in
Murtala Muhammed square, and when his convoy pulled up, the bomber
lunged at him before being stopped by his private security, witnesses
and police said.

"The attack was targeted at the sheikh. No arrest has been made yet,"
said police commissioner Shehu Umar.

The bomb did not injure Bauchi, several witnesses told Reuters.
Mustafa Sani, a volunteer for Bauchi's mosque evacuating bodies, said
there were 32 confirmed dead so far.

read more

Abubakar Shekau "We are in your city," he said, addressing Nigeria's President Goodluck 22-APR-2014

"We are in your city," he said, ad- dressing Nigeria's President
Goodluck Jonathan.

That comment could have been made by the Al-Shebaab.

Both Boko Haram and Al-Shebaab represent a risk that David Lipton did
not touch on, that being asymmetric risks. The recent bombings in
Abuja and last years attack on Westgate confirm the potency of
asymmetric risks. African markets have taken these risks in their
stride. They might stumble if these asymmetric risks ratchet higher.

read more

Ghana Stock Exchange Composite Index Bloomberg +8.0652% 2014

Ghana's annual producer price inflation (PPI) rose to a fresh
four-year high of 33.1 percent year-on-year in June, driven mainly by
utility price increases, the statistics office said on Wednesday.


read more

Ethiopia should consider currency devaluation, says World Bank

Ethiopia should consider devaluing its currency to boost exports as
they are mostly unprocessed products and need to stay competitive on
price, a World Bank economist said on Tuesday.

Ethiopia, whose main exports are coffee, horticultural products,
oilseeds and livestock, has operated a carefully managed floating
exchange rate regime since 1992.

The last big devaluation was in 2010 when the birr lost 16.7 percent
of its value to the dollar. The central bank quoted the birr at
19.6511/19.8476 to the U.S. currency on Tuesday.

"By one measure of real exchange rate, Ethiopia's currency is 31
percent overvalued," the World Bank's lead economist in Ethiopia, Lars
Christian Moller, said in Addis Ababa.

At an event to launch an economic report on the Horn of Africa nation,
he said devaluing the currency by 10 percent could increase export
growth by 5 percentage points a year.

"Ethiopia's exports are relatively unsophisticated, unprocessed and
tend to compete in price, that means that we need to look more into
what are the export prices, and how can we manage them," he said.

"This is where a competitive real exchange rate comes in. We argue
that it could help support export promotion," he added.

The Horn of Africa country's exports rose to $2.6 billion in the first
10 months of 2013/2014, an increase of almost $5 million over revenue
earned through all of 2012/2013.

But earnings from coffee, the country's main commodity export, tumbled
to about $489 million during the period, less than half of the
government's target.

Ethiopia has been a star economic performer in Africa, reporting
double-digit growth in several recent years. Growth has edged down but
the International Monetary Fund still expects a robust 8 to 8.5
percent for fiscal years 2013/14 and 2014/15.

Both the World Bank and IMF have said the government needs to loosen
the reins on the economy, which is still heavily controlled by the
state, to avoid squeezing out the private business and hurting growth
prospects in future.

read more

Ethiopia Becomes China's China in Search for Cheap Labor

Ethiopian workers strolling through the parking lot of Huajian Shoes'
factory outside Addis Ababa last month chose the wrong day to leave
their shirts untucked.

Company President Zhang Huarong, just arrived on a visit from China,
spotted them through the window, sprang up and ran outside. The former
People's Liberation Army soldier harangued them loudly in Chinese,
tugging at one man's aqua polo shirt and forcing another's shirt into
his pants. Nonplussed, the workers stood silently until the eruption

Shaping up a handful of employees is one small part of Zhang's quest
to profit from Huajian's factory wages of about $40 a month -- less
than 10 percent the level in China.

"Ethiopia is exactly like China 30 years ago," said Zhang, 55, who
quit the military in 1982 to make shoes from his home in Jiangxi
province with three sewing machines and now supplies such brands as
Nine West and Guess?. "The poor transportation infrastructure, lots of
jobless people."

Almost three years after Zhang began his Ethiopian adventure at the
invitation of the late Prime Minister Meles Zenawi, he says he's
unhappy with profits at the Dongguan Huajian Shoes Industry Co. unit,
frustrated by "widespread inefficiency" in the local bureaucracy and
struggling to raise factory productivity from a level he says is about
a third of China's.

 Transportation and logistics that cost as much as four times those in
China are prompting Huajian to set up its own trucking company. And
the use of four languages in the plant -- Ethiopia's national
language, Amharic; the local tongue, Oromo; English and Chinese --
further complicates operations, Zhang says.

It takes two hours to drive 30 kilometers (18 miles) to the Huajian
factory from the capital along the country's main artery, illustrating
the challenges. Oil tankers and trucks scream along the bumpy,
potholed and, at times, unpaved road. Goats, donkeys and cows wander
along the roadside and occasionally into bumper-to-bumper traffic.
Minibuses and dented taxis, mostly blue Ladas from the country's past
as a Soviet ally, weave through oncoming traffic coughing a smoggy

Huajian is nonetheless becoming a case study of Ethiopia's emerging
potential as a production center for labor-intensive products from
shoes to T-shirts to handbags. In a country where 80 percent of the
labor force is in agriculture, manufacturers don't have to worry about
finding new workers. Its population of about 96 million is Africa's
second-largest after Nigeria's.

 A combination of cheap labor and electricity and a government
striving to attract foreign investment makes Ethiopia more attractive
than many other African nations, said Deborah Brautigam, author of
"The Dragon's Gift: The Real Story of China in Africa" and a professor
of international development and comparative politics at Johns Hopkins
University's School of Advanced International Studies in Washington.

"They are trying to establish conditions for transformation,"
Brautigam said in a telephone interview. "It could become the China of

Huajian's 3,500 workers in Ethiopia produced 2 million pairs of shoes
last year. Located in one of the country's first government-supported
industrial zones, the factory began operating in January 2012, only
three months after Zhang decided to invest. It became profitable in
its first year and now earns $100,000 to $200,000 a month, he said,
calling it an insufficient return that will rise as workers become
better trained.

Under bright fluorescent lights, amid the drone of machines, workers
cut, glue, stitch and sew Marc Fisher brown leather boots bound for
the U.S. Meanwhile, supervisors monitor quotas on whiteboards, giving
small cash rewards to winning teams and criticism to those falling

 China, Africa and global retailers all have stakes in whether
Ethiopia and such countries as Tanzania, Rwanda and Senegal become
viable production bases for labor-intensive products. Promoting trade,
boosting employment and spurring investment are among the topics that
will be discussed on August 4-6 at the first White House U.S.-Africa
Leaders Summit in Washington.

African nations have a compelling opportunity to seize a share of the
about 80 million jobs that China will export as its manufacturers lose
competitiveness, according to Justin Lin, a former World Bank chief
economist who now is a professor of economics at Peking University.

Chinese Premier Li Keqiang and Ethiopian Prime Minister Hailemariam
Desalegn, who met on May 4, backed the move of Chinese industries to
Ethiopia. China is "supporting Ethiopia's great vision to become
Africa's manufacturing powerhouse," Hailemariam told reporters at a
joint press conference in Addis Ababa.

Weaker consumer spending in the U.S. and Europe after the financial
crisis prompted global retailers to hasten their search for lower-cost
producers, said Helen Hai, head of China Africa Consulting Ltd. in
Addis Ababa. She ran Huajian's Ethiopia factory until July of last

While China's inland regions offered manufacturers a cheaper
alternative to the export-linked coastal areas, rising costs and a
limited pool of available workers now are undermining that appeal.

Average factory pay in Henan, about 800 kilometers from the coast,
rose 103 percent in the five years ended in September and 80 percent
in Chongqing, 1,700 kilometers up the Yangtze River. In the same
period, salaries rose 82.5 percent in Guangdong, where Huajian has its
base in the city of Dongguan.

Cost inflation in countries including China has prompted Hennes &
Mauritz AB, Europe's second-biggest clothing retailer, to work with
three suppliers in Ethiopia. The nation has "great potential" for
production, H&M head of sustainability Helma Helmersson said in an
April interview.

China's average manufacturing wage is 3,469 yuan ($560) per month. Pay
at the Huajian factory ranges from the basic after-tax minimum of $30
a month to about twice that for supervisors. By contrast, average
manufacturing wages in South Africa, Africa's biggest manufacturer,
are about $1,200.

The duty-free and quota-free access that Sub-Saharan Africa enjoys for
the U.S. and EU markets gives additional savings thanks to the African
Growth and Opportunity Act for the U.S. and the EU's Everything But
Arms accord for the poorest countries. Import tariffs on shoes made in
China range from 6 percent to as much as 36 percent, Zhang said.

A spokeswoman for Guess? confirmed that a licensee has done business
with the Huajian Ethiopia factory in the past and may do so in the

A spokesman for Sycamore Partners, which owns Nine West, declined to
comment on its business relationships and whether it has a
relationship with Dongguan Huajian Shoes Industry Co. Marc Fisher
Footwear is making shoes in the Ethiopia factory, Jaclyn Weissman, a
spokeswoman for the company, wrote in an e-mail.

Signs of Ethiopia's allure include factories outside Addis Ababa set
up by leather goods maker Pittards Plc of the U.K. and Turkish textile
manufacturer Ayka Tekstil. Foreign direct investment in the nation
surged almost 250 percent to $953 million last year from the year
before, according to estimates by the United Nations Conference on
Trade and Development.

Zhang spends about half his time in Ethiopia, he says. During the
visit last month, he spoke to about 200 uniformed Huajian supervisors,
a mix of Ethiopians and Chinese, gathered in the parking lot. A giant
plasma screen mirrored the crowd as Zhang hurried onto the stage.

He berated those assembled for a lack of efficiency, then praised them
for their loyalty to Huajian, his words translated into Amharic and
Oromo. He ordered them to march on the spot, to turn left and to turn
right, all chanting together in Chinese.

"One two one," they chanted. "One two three four," as they marched in
step. Slogans followed: "Unite as one." "Improvement together."
"Civilized and efficient."

They sang the "Song of Huajian," whose words urged "We Huajian people"
to bravely move forward, to hold the banner of Huajian high and to
"keep our business forever." Chinese supervisors led the song, their
Ethiopian colleagues stumbling over some words and struggling to keep

Later, Zhang explained that he can't be as tough on the staff as he would like.

"Here the management cannot be too strong as there will be a problem
with the culture," he said via a translator. "In China you can be
strong, but not here. The conditions here mean we have to show
respect. On one hand we have to have strict requirements; on the other
hand we have to take care of them. They have their own dignity. They
may be poor but we have to respect their dignity."

About 200 of the workers rebelled in early 2013, going on strike for
two days after demanding a share of profits following a period in
which Huajian's orders surged, said Hai. The incident was resolved
with the help of Ethiopian labor officials, she said.

Five workers interviewed at the factory on July 10 described a
workplace of strict standards, with rewards for good results and
penalties such as docked pay for ruined shoes.

Taddelech Teshome, 24, said her day starts at 7:20 a.m. after her
Chinese employers provide employees with a breakfast of bread and tea.
When her morning shift ferrying shoes from the factory floor to the
warehouse is over, she gets fed the national staple, sour bread, for
lunch. After work, a Huajian bus takes her to nearby Debre Zeit, a
town where she rents a room with her sister for $18 a month.

She came to Huajian just over a year ago from her home 165 kilometers
away in Arsi region after her sister started at the factory.

"The work is good because I pay my rent and I can look after myself,"
she said, wearing an aqua Huajian polo shirt. "It's transformed my
life." Taddelech said she wants to work for two more years at the
plant and become a supervisor. She eventually aspires to build her own

With inflation at 8 percent -- down from 40 percent in July 2011 --
saving cash is tough. Mohammed al-Jaber, who earns $30 a month for
gluing shoe linings eight hours a day six days a week, said he can add
to his pay with perfect attendance each month -- a $7.50 bonus -- and
overtime. Any extra gets sent home to his family in the Arsi region.

Once famine-plagued Ethiopia, run by former rebels since they
overthrew a socialist military junta in 1991, is seeking investment to
support a growth rate that's expected to fall to 7.5 percent this year
from 9.7 percent in 2013. The population is expanding annually by 2.9
percent, at a time when the urban unemployment rate is 17.5 percent.

Ethiopia aims "to transform the economy" via industrialization by
attracting foreign investors to zones where key public services will
be concentrated, State Minister Of Finance Ahmed Shide said in an
interview in Addis Ababa.

One appeal for China: Ethiopia follows a similar tightly controlled,
state-heavy economic model. Opposition parties won only one out of 547
parliamentary seats at the last election in 2010.

Ties are strong between the Communist Party of China and the Ethiopian
Peoples' Revolutionary Democratic Front: On July 10, Central Committee
Political Bureau member Guo Jinlong visited Ethiopia and met with
Prime Minister Hailemariam. The two pledged to enhance cooperation,
the official Xinhua news agency said.

Ethiopia's heavy public investment in infrastructure using credit from
Chinese state banks promises to relieve some key bottlenecks. The
Export-Import Bank of China is funding a railway from Addis Ababa to
landlocked Ethiopia's main port in neighboring Djibouti. Ethiopia lost
its coastline when Eritrea became independent in 1993.

The Chinese and Ethiopian governments also are investing in
hydroelectric plants -- including what will be Africa's largest, the
domestically funded Grand Ethiopian Renaissance Dam on the Blue Nile
-- that should increase Ethiopia's power supply five-fold by 2020.

That may help overcome obstacles including the supply of electricity
and cumbersome customs and tax procedures. In May, a World Bank team
went to visit a textile factory in the Eastern Industrial Zone, where
the Huajian plant is located, and found they are faced with daily
power outages lasting for hours, Ethiopia country director Guang Zhe
Chen said.

"There's a big issue if you can't ensure sustainable power supply for
industrial zones," he said.

While countries like Ethiopia have the potential to host Asian
manufacturers, a "surge" hasn't occurred, in part because of trade
logistics constraints. "Getting things in and out of Ethiopia is very
expensive and time consuming."

Ethiopia slipped one place to 125th in the World Bank's 2014 Doing
Business rankings for 189 economies. It was behind China, at 96th, and
ahead of competitor Bangladesh, which ranked 130th, the
Washington-based lender said on its website.

It's easy to forget that China's infrastructure also was rudimentary
at a similar stage of development, said Lin. He recalls that the first
time he made the 96-mile trip between Shenzhen and Guangzhou in
southern China in the early 1980s it took more than 12 hours,
including long waits for ferries to cross rivers. The same trip now
can be done in two hours.

"There were no bridges," Lin said in an interview.

Nor were workers accustomed to modern production techniques. When
auto-parts maker Asimco Technologies Ltd. began manufacturing in China
in the 1990s, workers weren't responsive to training, said Tim
Clissold, former president of the Beijing-based company and author of
a memoir, "Mr. China."

"It was very difficult to deliver improvements at individual
factories," he said. "You could do training, and everyone smiles
politely and then continues doing what they were doing before."

Now, rising Chinese wages that Zhang calls "an inevitable trend" are
pushing Huajian to try to increase its workforce in Ethiopia to as
many as 50,000 within eight years.

A model of a planned new plant at the edge of Addis Ababa is displayed
at the factory. The 126-hectare (341-acre) complex, partly financed by
more than $300 million from Huajian, will include apartments for
workers, a "forest resort" district and a technical university.

At the gathering in the parking lot, after supervisors sang Huajian's
company song, Zhang dismissed the Ethiopian contingent. Then he
continued haranguing the Chinese managers. To make his point that
structure was needed to keep employees in focus, he thrust a
broomstick toward them repeatedly, then toward the remote camera that
was feeding to the plasma screen, the image blurring with each prod.

Then he left the stage, laughing and raising a triumphant fist.

read more

Fitch: Angola Could Meet BESA Guarantee, but Could Erode Buffers

(The following statement was released by the rating agency) LONDON,
July 22 (Fitch) The sovereign guarantee provided by the Ministry of
Finance to Banco Espirito Santo Angola (BESA) in December 2013, worth
USD5.7bn (5% of GDP), will not undermine Angola's creditworthiness by
adding to the government's debt burden if it is called, Fitch Ratings
says. But it could further erode liquidity buffers, and raises broader
concerns about governance, particularly in the banking sector. We
understand the guarantee is extended to all BESA's creditors. We
believe it was provided to restore confidence in the bank, which had
reportedly been struggling with liquidity problems. Preventing
contagion across the wider sector is likely to have been another
factor. The guarantee is like a contingent credit line and can be
renegotiated after a year. It can be invoked only if other options for
selling or restructuring the bank are not possible and liquidity
support over and above central bank support is required. Failure to
honour the guarantee could undermine the credibility of the sovereign
if the challenges facing the bank are not resolved. There is
sufficient immediate public sector liquidity to ensure the guarantee
can be honoured, if called. Government deposits in Angola, which could
be drawn, are equivalent to USD15bn (12% of GDP). Government debt, low
at 24% of GDP, would not need to increase to meet the guarantee. But
public deposits, built up in 2009-2012, when the budget was in
surplus, have fallen from their peak of USD22bn in 2012. The
government used deposits to repay foreign-currency contractor arrears
built up in 2010-2012.

SABMiller Zimbabwe unit says lager sales sharply down


HARARE, July 23 (Reuters) - SABMiller's Zimbabwe affiliate said on
Wednesday lager sales volumes fell 21 percent during the first quarter
to June, another sign of the southern African nation's sharply
contracting economy.

Delta Corporation, Zimbabwe's largest listed company with a market
capitalisation of $1.55 billion, is 38 percent owned by global brewing
giant SABMiller.

The company said in a trading update that soft drinks volumes were
also down 8 percent and that its customers were moving to cheaper
sorghum beer, whose volumes jumped 15 percent during the period.

Delta reported an 18 percent fall in lager volumes during the year to March.

Capital raised through IPO activity on African stock exchanges in 2014
has now surpassed the total raised during the whole of 2013.


IPO activity in the first half of 2014 has resulted in capital raising
totaling $808.5 million. The total amount raised through the whole of
2013 was $757.5 million, according to figures from consultant EY.

There have been a variety of eye-catching deals of late. In June,
cement maker Lafarge confirmed it would be listing its Nigerian and
South African businesses together on the Lagos stock exchange with a
combined market capitalization of $3 billion.

In May, Arabian Cement became the first listing on the Cairo exchange
since the Arab Spring of 2011, in an offering that was more than
18-times oversubscribed by investors.

Earlier this month, though, speed bumps outside Africa derailed the
planned IPO of the Mota-Engil Africa, a spinoff of a Portuguese
builder. The company decided to shelve the listing amid continuing
concerns about the stability of Portugal's markets.

Razia Khan, head of African region research at Standard Chartered,
says Africa's IPO activity tends to be concentrated in key
markets--evidenced by the fact that the bulk of the big deals so far
this year have been in North Africa. She believes, though, that the
current listing boom is evidence that the African markets are still
recovering from the shock of the financial crisis in 2008.

"With Africa things tend to go in cycles. It was only after [the U.S.
Federal Reserve's third quantitative easing cycle] that we started to
see a meaningful growth in international interest in African
equities," she noted. "The IPO activity lagged this recovery in
growth--it's not surprising that we're seeing a rise, but the scale of
it is interesting," she added.

Senegal  is set to raise $500 million from the 10-year debt sale at a
yield of 6.25%, according to a banker working on the deal.


Investors placed more than $4 billion of orders, the banker said.

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UNCTAD World Investment Report 2014 says FDI inflows in 2013 stood at $514 million (Sh45.18 billion), up from $259 million (Sh22.7 billion) a year earlier which is a 98 per cent increase.
Kenyan Economy

Kenya's share of FDI inflows was however smaller than its neighbours.
Flows to the East African region stood at $6.2 billion (Sh545 billion)
in 2013.

Tanzania recorded the highest inflows at $1.872 billion (Sh162.8
billion) followed by Uganda $1.146 billion (Sh99.7 billion) and
Ethiopia $953 million (Sh82.9 billion).

Rwanda and Burundi were behind Kenya with FDI flows of $111 million
(Sh9.6 billion) and $7 million (Sh609 million) respectively.

FDI inflows to Africa stood at $57.24 billion (Sh4.9 trillion).

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Kenya's stock exchange prices IPO, plans derivatives market
Kenyan Economy

Kenya's securities market priced shares in its initial public offering
at 9.50 shillings ($0.11) on Wednesday, saying it planned a new
derivatives market, as it opened up to non-brokers for the first time
in 60 years.

The Nairobi Securities Exchange (NSE) is used as an entry point into
east Africa by foreign investors seeking exposure to fast-growing
economies in the region. Several Kenyan firms are cross-listed on
neighbouring bourses.

The business, which was until this year mainly owned by brokers who
paid for a membership in the mutual company that ran the market, hopes
the listing will enhance transparency and provide funds for new

It plans to invest the 627 million shillings raised, if the offer is
fully subscribed, in rolling out new products including a derivatives
market, offering futures and options.

Referring to new products in the IPO prospectus, NSE Chief Executive
Officer Peter Mwangi said: "Individuals and companies can cushion
themselves against interest rate fluctuations, exchange rate
volatility, and commodity price changes while boosting liquidity in
the underlying assets."

Investors in the issue, which will be open from July 24-Aug. 12, will
be offered about 31 percent of the NSE's 212.5 million authorised

The NSE has assets of 1.4 billion shillings and reported a pretax
profit of 379 million shillings last year. It had more than 120 listed
equities and bonds at the end of last year.

The market capitalisation for all shares and bonds listed on the
market stood at about 2.7 trillion shillings ($30.75 billion) at the
end of 2013.

NIC Bank reports H1 2014 PAT +9.4% Earnings here


Par Value:                  5/-
Closing Price:           59.00
Total Shares Issued:          542980000.00
Market Capitalization:        32,035,820,000
EPS:             6.12
PE:                 9.641

1st Half Earnings through 30th June 2014 versus through 30th June 2013

H1 Total assets 129.603862b versus 121.062739b
H1 Loans and Advances to Customers 91.517322b versus 83.493313b
H1 Interest income 6.658875b versus 5.573025b +19.5%
H1 Interest Expense [2,881134b] versus [2.141362b] +34.5%
H1 Net Interest Income 3.777741b versus 3.431663b+10.1%
Credit Impairment charges [198.656m] versus [342.573m]
Net Impairment 3.579085b versus 3.089090b
H1 Net Fee and Commission Income 678.616m versus 488.796m
Net Trading Income 666.740m versus 706.426m
H1 Net Operating Income 5.169225b versus 4.673047b
H1 Operating Expenses [2.260746b] versus [2.045459b]
H1 Profit before Income Tax 2.90479b versus 2.627588b +10.7%
H1 Profit after Tax 2.041436b versus 1.866727b +9.4%
H1 EPS 3.38 versus 3.12 +8.4%

See Segment Breakdown here



Better than solid.

Kenya Shilling versus The Dollar Live ForexPros 87.851


Nairobi All Share Bloomberg +10.332% 2014


Nairobi ^NSE20 Bloomberg -0.8932% 2014


Every Listed Share can be interrogated here


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by Aly Khan Satchu (www.rich.co.ke)
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July 2014
08-apr-2011 ::  Rich Podcast 8th April 2011
07-apr-2011 ::  Rich Podcast 7th April 2011
06-apr-2011 ::  Rich Podcast 6th April 2011
05-apr-2011 ::  Rich Podcast 5th April 2011
04-apr-2011 ::  Rich Podcast 4th April 2011
01-apr-2011 ::  Rich Podcast 1st April 2011

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