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Thursday 22nd of July 2010 |
Morning Africa |
www.rich.co.ke Register and its all Free.
If you are tracking the NSE Do it via RICHLIVE and use Mozilla Firefox as your Browser. 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 http://www.rich.co.ke/rctools/richpod.php
Macro Thoughts
Euro had gotten way ahead of itself.
Home Thoughts
This Morning The Little One had gotten a little cranky and to deflect her I asked her who her favourite singer was.And She tells me Akon. There is a Song in which he repeats NANANANA and she is convinced he is singing Hannah Nah Nah and hence the Song is for her and Who am I or anyone else to disavow her of that Notion. Previously, when he was meant to come to Nairobi, she had shown a very keen interest in his whereabouts and where he might stay.I did not tell her yet that I have a Friend in Kinshasa who is Akon's very good Friend and if I can swing it, I will swing a big surprise.
I said
Look If Mr. Akon wants to come by and call on you, he better wear a Suit and be on his best Behaviour.
Anyway How will Ayush feel? Ayush being a Toddler in her Kindergarten.
And we left each other this Morning, thinking our Thoughts. |
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A Year After Honeymoon Ends, Whites, Men and Independents Desert Obama WSJ Law & Politics |
Mr. Obama won a surprisingly easy victory in 2008, carrying 53% of the popular vote and 365 electoral votes – along with Bill Clinton in 1996, the biggest Democratic presidential win since Lyndon Johnson’s 1964 landslide.
Quinnipiac University today released a national poll of 2,181 registered voters, almost twice the size of most national polls. (It has a margin of error of 2.1 percentage points.) It showed President Obama’s net job approval rating at its lowest point ever – 44% approve, 48% disapprove.In July 2009, Quinnipiac’s national poll had the president with 57% approve, 33% disapprove.The decline in Mr. Obama’s support over the past year has been across the-board, with the largest decreases being among whites, older voters, political independents and men.
On Election Day 2008, much was made of the increased turnout that Mr. Obama inspired among young voters and African-Americans, and to be sure that fattened his margin. But he won the White House because, the exit polling showed, he got 49% of men, 43% of whites and 52% of independents. Each of these three groups individually makes up a larger share of the electorate than blacks and young people combined.
In July 2009, President Obama had actually grown that support so that he was getting a thumbs-up job approval from 54% of men, 51% of whites and 52% of independents.But today, the numbers for those three groups show just how far he has fallen. He gets a positive job approval from just 37% of whites, 38% of independents and 39% of men – a roughly 30% drop in all three groups in his support.
Conclusions
The Tape is Your Telescope and The Tape reads very soft. |
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Kampala Journal Somali Refugees Fear Loss of Ugandan Haven NYT Law & Politics |
“Sometimes I get these bad dreams,” said Ahmed Uleh, his eyes hidden behind shiny aviator sunglasses. “Like they are trying to cut off my head.”
He arrived here in Uganda’s capital, Kampala, last year, joining tens of thousands of other Somalis who have fled decades of violence back home, to come live in a country diplomats and United Nations officials call a refugee’s paradise.
Now that paradise is under threat. Since the attacks, the military and police presence has heightened, some travelers from the Horn of Africa have been turned away at borders and changes to asylum protocol have put Somalis like Mr. Uleh on edge.
A Somali girl walked home from school with her Ugandan classmates. Somalis have built a flourishing community that many here call Little Mogadishu.
Conclusions
This was surely an intended Consequence of Al Shabaab's, to pressurise their Diaspora Populations living in African Cities. |
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David Cameron presents Barack Obama with graffiti art BBC Kenyan Economy |
A painting by a graffiti artist was among the official gifts to Barack Obama from David Cameron on his first trip to Washington as prime minister.The work, Twenty First Century City, is by Ben Eine, said to be one of the PM's wife Samantha's favourite artists. The 39-year-old artist recently sprayed the entire alphabet on shop shutters in a London street.Mr Obama continued the art theme by presenting the Camerons with a signed lithograph by pop artist Ed Ruscha. |
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Pinching Pennies, U.K.’s Cameron Goes Commercial on U.S. Trip Bloomberg [Smart] Law & Politics |
U.S. politicians may dream of one day sinking into the presidential bed aboard Air Force One. David Cameron, returning last night from his first trip to the U.S. as British prime minister, took a business-class seat on board a scheduled British Airways flight.
Cameron, trying to cut Britain’s deficit, its largest since World War II, is scaling back on the chartered jets his predecessors used for overseas travel and told his staff to book him on regular flights. Yesterday he traveled to New York from Washington on Amtrak’s Acela train.
“We have got a lot of money to save,” the prime minister told ABC News July 20. “We’ve got a very big budget deficit, so we can’t go spending money on executive planes, sadly.”
Conclusions
Liked him when I met him and frankly, he has not put a Foot wrong. |
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Fed chief’s testimony hits market confidence FT World Of Finance |
US equities tumbled into negative territory and the yield on two-year Treasury notes fell to a record low after Ben Bernanke, the Federal Reserve chairman, acknowledged an “unusually uncertain” economic outlook.The Fed chief told Congress that the central bank “continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.“He added that financial conditions in light of European debt concerns “have become less supportive of economic growth in recent months.”Against that backdrop, Mr Bernanke said policy makers “remain prepared to take further policy actions as needed to foster a return to full utilisation of our nation’s productive potential in a context of price stability.”
Treasuries are seeing demand, with yields of the two-year note, at 0.56 per cent, its historic low. The 10-year yield is down 6 basis points at 2.87 per cent, with traders confident that the Fed will resort to more QE, should the economy warrant further support in the coming months.
Conclusions
Hardly a Ringing Endorsement. |
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US Bond Curve WSJ World Of Finance |
3-Month Bill* 0/32 0.157 6-Month Bill* -0/32 0.193 1-Year Note* -0/32 0.242 2-Year Note* 2/32 0.560 3-Year Note* 3/32 0.904 5-Year Note* 8/32 1.644 7-Year Note* 13/32 2.314 10-Year Note* 21/32 2.882 30-Year Bond* 1 21/32 3.893
2 Year at a Record Low. |
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Euro Rally Is Prelude to a Fall WSJ World Currencies |
Investors' recent romance with the euro may just be a summer fling.
Before taking a midafternoon slide Wednesday, the euro had advanced more than 9% on the dollar since June 7, climbing to $1.30 this week from a four-year low of just under $1.19.
Conclusions
You are not wrong. We had massive Short Positioning in the Euro and a Squeeze until the Pips Squeaked. And then Bernanke started talking down the US. I think this Dead Cat Bounce has run its course. Aly-Khan Satchu www.rich.co.ke |
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Currency Markets at a Glance WSJ World Currencies |
Euro 1.2770 Pound 1.5178 Dollar Index 83.18 Aussie 0.8753 Rand 7.5510 South Korean 1206.20
The euro fell to $1.2764, after being above $1.28 before Bernanke's remarks and from $1.2886 late Tuesday. Earlier this week, the single currency was unable to extend a push above the $1.30 level against the dollar. |
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The story of the gold curve, so far AlphaVille Commodities |
That is to say we used to pay for borrowing money from the bank – pledging gold as collateral. Now we get paid for borrowing money from the bank – pledging gold as collateral. We wonder why.
Among them, a clear deviation in the shape of the gold forward curve, in part linked to what seems on the surface a totally seized up and dysfunctional gold leasing market.Lease rates as they stand now are negative — something that’s almost unprecedented in recent history. At least judging by the below chart:
The problem is: the ‘total’ picture of stocks is actually made up of two types of inventory. Gold that is registered and gold that is eligible. It just so happens that only ‘registered gold’ is available for delivery against futures, while ‘eligible gold’ is simply that being stored at the Comex by its owners.
And when those two categories are broken down, a very different picture begins to emerge.
First, Comex’s registered holdings:
Conclusions
Negative Rates are not entirely unusual. I have paid negative rates for CTD Bonds in Italy and Japan. It strikes me that we might be reaching a Tipping Point and a small Perturbation might result in Lent Gold being pulled and that would seriously squeeze the Price. Aly-Khan Satchu www.rich.co.ke |
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Prada Speaks Portuguese Bloomberg Retail & Manufacturing |
The fastest economic growth in 15 years, a currency that has doubled against the U.S. dollar since 2003 and higher disposable income are encouraging Brazilians to purchase luxury goods in New York. At the Prada store in SoHo, the Italian retailer has at least three Portuguese-speaking sales representatives to cater to Brazilian visitors. David Wasserman, co-owner of Stereo Exchange in Manhattan, said demand from Brazilians is rising, including the sale of a $100,000 home theater system this month to a customer from Sao Paulo.
“Brazil has really hit my radar screen,” Wasserman said.
In the country of more than 193 million people, the number of billionaires has doubled since 2000 to 18 and Brazil now has more than any nation in Latin America, according to Forbes magazine. The number of millionaires in Brazil jumped 19 percent to 126,882 from 2008 to 2009, according to Boston Consulting Group data. That ranks Brazil as 17th among markets with the highest number of households having a net worth of $1 million.
The real rallied 100 percent against the dollar since President Luiz Inacio Lula da Silva took office in January 2003 and jumped 33 percent in 2009, the best-performing currency in the world, helped by revenue from exports of commodities such as coffee and soybeans and demand for the nation’s stocks and bonds. The currency is down 1.7 percent this year after the government started a tax on foreigners’ purchases of stocks and bonds in a bid to curb its gains.
First quarter economic growth of 9 percent, the fastest since 1995, was driven by consumer spending, as retail sales climbed 15.7 percent in March from a year earlier, the most since at least 2001. Gross domestic product will expand 7.2 percent in 2010, the quickest pace in more than two decades, according to a central bank survey of about 100 economists published July 19.
Gross disposable income in Brazil advanced 54.3 percent from the time Lula, 64, took office through the first half of 2010, the national statistics agency said in an e-mailed statement July 16.
More than 5.22 million jobs have been created in Brazil since December 2006, pushing the unemployment rate down to 7.5 percent in May from 8.4 percent. Average monthly wages have risen 29 percent, excluding inflation, to 821 reais ($463) under Lula, according to the Labor ministry.
Demand is so strong for travel to New York that American Airlines is adding 11 flights a week between the U.S. and Brazil beginning Nov. 18, the Fort Worth, Texas-based air carrier said in a June 24 statement.
Conclusions
On a Tangential Point, the DRC should be Africa's Brazil. |
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Shell in Talks With Vitol, Helios on 19 Africa Units Bloomberg Minerals, Oil & Energy |
Royal Dutch Shell Plc said it’s in exclusive talks with Vitol Group and Helios Investment Partners LLP over its planned sale of interests in 19 African retail and distribution units.
“Under the terms of the proposed deal, which would see the Shell brand and products remain in each country, Vitol and Helios would become the majority shareholders in the businesses, with Shell retaining a shareholding,” Shell Oil Products said in an e-mailed statement today.
Shell said in April it’s reviewing its downstream businesses in 21 African countries and other regions to focus on fewer, larger markets. The businesses under review in Africa are profitable, Shell said at the time. The countries include Morocco, Egypt, Ghana, Togo, Kenya, Uganda, Tanzania, Botswana and Namibia among others.
“We’re talking about 1,350 retail sites and about 2,000 staff members,” Dennis Matsane, a spokesman for Shell, said by mobile phone in Johannesburg today, declining to disclose the potential deal value. Shell’s fuels, lubricants, refining and liquefied petroleum gas businesses in South Africa are not part of the deal, according to the statement. |
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Police stop ‘Yes’ bid to break up Moi rally Nation Law & Politics |
Police had a difficult time stopping ‘Yes’ supporters from disrupting a ‘No’ rally at Suswa in Narok District on Wednesday.
Police officers were forced to create a buffer zone between the two groups, with ‘Yes’ supporters, led by nominated councillor Lydiah Ntimama vowing that the ‘No’ team, led to the meeting by Higher Education minister William Ruto and retired President Moi, will not have their meeting at the venue.
“Tell Moi and Ruto to keep off our land, it is a sacred shrine and we won’t allow anybody to desecrate it,” a charged Ms Ntimama told area police officer Isaac Odumbe.
Several lorry-loads of police officers were poured in the area to ensure there was no confrontation. But there was a near-stampede when Mr Moi arrived shortly after 1pm. ‘Yes’ supporters, who had been watching the proceedings from a distance, charged towards the dais waving green scarves and chanting slogans.
Police moved quickly and stopped the hecklers, who regrouped and waved placards. “Moi failed to give us a constitution for 24 years” and “Who grabbed Mau?” read some of the placards.
Conclusions
Its going One way and it is the right way for the Bourse. |
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Safaricom ready for competition in Kenya Capital FM Information & Communication Technology |
Safaricom says it is going to leverage on knowledge of the local market to ward off competition from other service providers.Safaricom Chief Executive Officer Michael Joseph on Wednesday acknowledged increasing competition in the market but said they are not going to be drawn into vicious marketing gimmicks to retain their lead.His sentiments come barely three weeks after new entrant Bharti vowed to become the leading operator within the next three years.
“We can’t pretend that we don’t have a new offering coming in from Bharti very soon. But we have withstood the two companies that have come before them promising to eat our lunch and never did,” Mr Joseph said.
He added that Safaricom was in a unique position to maintain a sizeable share of the market.
“Of course, our 78 percent market share by SIM numbers will decline; it is a mathematical certainty. What is important for us is to maintain our market share by revenue which is more important,” he said.
In its 2009 financial year, Safaricom’s revenues grew by 19.1 percent to Sh83.9 billion from a previous Sh70.4 billion. The growth was mainly driven by a 137.6 percent jump in data revenues as it looks to reduce its dependency on voice revenue alone.
Bharti has announced plans to pump Sh12 billion in a bid to push the Airtel brand to the rural areas signaling a battle based on pricing for subscribers.Airtel will be looking to increase its market share by focusing on rural areas and lowering communication costs.
One way Safaricom will look to maintain its lead in the market will be by capitalising on its flagship money transfer service, M-Pesa.Since its introduction three years ago the service has moved Sh300 billion. Some utility companies have also teamed up with the service to offer convenience in paying bills.
Conclusions
“We can’t pretend that we don’t have a new offering coming in from Bharti very soon. But we have withstood the two companies that have come before them promising to eat our lunch and never did,” Mr Joseph said. |
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Huawei, in partnership with Safaricom, launches U8220 Android mobile phone IT WEB Information & Communication Technology |
Safaricom's Chief Executive Officer, Michael Joseph, said: “We take this opportunity to laud Huawei Technologies for taking the leadership to formally launch the first Android phone in Kenya. Safaricom and Huawei have been collaborating for several years now and this joint initiative is an example of cooperation between the most innovative companies in the fields; Safaricom is the Kenyan telecommunication arena. Safaricom is in the middle of revolutionising its use of the Internet to change people's lives and Huawei is an important partner to the end.”
An Interview with the CEO Michael Joseph RICH TV http://j.mp/81lKEb |
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Kenya BoP swings to $524 mln surplus in yr to March Reuters Kenyan Economy |
Kenya recorded a balance of payments surplus of $524 million in the year to March 2010 from a deficit of $698 million a year previous, the central bank said in its latest monthly economic review.
The current account deficit shrank to $1.072 billion in the twelve months to March from a deficit of $2.155 billion a year earlier.
Domestic credit grew by 23.2 percent in the year to April, compared with growth of 11.2 percent a year earlier. Private sector credit increased to 17.4 percent, from 14.5 percent previously.
The average interbank rate rose to 2.46 percent in April from 2.21 percent in March.
The interest rate spread widened to 10.09 percent in April from 10.06 percent a month earlier. The average deposit rate stood at 4.49 percent from 4.74 percent in March, while lending rates were at 14.58 percent from 14.80.
Commercial banks' aggregate balance sheet grew by 21.4 percent to 1,488.5 billion shillings ($18.18 billion) in April. In the same month, gross loans and advances grew to 799.5 billion shillings from 698.2 billion shillings a year before.
In the first 10 months of the 2009/10 (July-June) fiscal year, the budget deficit rose to 106.3 billion shillings , or 4.2 percent of gross domestic product (GDP) on a commitment basis, within the government's ceiling of 6.2 percent of GDP.
Kenya's public debt stood at 1,191 billion shillings -- or 25.9 percent of GDP -- in April, up 137.4 percent from 1,053.7 billion shillings in the same period a year previous. |
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N.S.E Today |
The Bourse traded thin today and might hunker down some more ahead of August 4th. The Optimal Outcome for the Bourse remains a convincing Yes Vote and on balance I expect such an Outcome. I feel this will be the Catalyst for a Feel Good Factor [Both Local and International] which could translate into a further rally into the close of the Year in the same magnitude as we have witnessed so far +29.96% This Year.
The NASI eked out an 0.01 point gain to close at 95.88. The NSE20 rebounded 15.92 points to close at 4345.86. Market cap was 1.118679 Trillion versus 1.118606 Trillion. Equity Turnover slid to 155.942m versus 234.554m last time. |
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N.S.E Equities - Agricultural |
Sasini Tea traded 164,800 shares and closed at 13.55. Kakuzi traded 1,100 shares to close at 72.50. |
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N.S.E Equities - Commercial & Services |
SAFARICOM
shares volume 3,946,100 total turnover 22,537,496 avg price 5.71 Closing Price 5.70 Unchanged high price 5.80 low price 5.60 last price 5.70
Conclusions
A Curious 2 Day Swoon now ended. Safaricom was the most active Counter and was trading at 5.75 into the close. They remain in Pole Position and their Ability to work in their Landscape unmatched. I dont see Airtel as a big threat here in Nairobi simply because taking on Safaricom Head to Head is hardly 'low hanging Fruit.' There is Low Hanging Fruit elsewhere in their African Franchise and it makes sense to look at Return on Capital, I would venture.
TPS Serena has announced the Rights Issue Timetable and edged 50 cents higher to close at 59.50 and traded a 58.00-60.00 range and 52,800 shares. TPS Serena has returned 63.685% ex Dividends over 12 months and this is a 2 Year Closing High.
TPS Serena Rights Issue Details and share price data from www.rich.co.ke http://j.mp/5Ve4gj
Par Value: 1/- Closing Price: 59.00 Total Shares Issued: 123,508,864 Market Capitalization: 7,287M EPS: 3.60 PE: 16.389
ScanGroup rallied 4.795% to close at 38.25 and traded 44,000 shares. A Neutral Price is 40.00 and we are headed there.
CMC Holdings traded 3rd overall. CMC bounced 1.966% to close at 12.95 and traded a 12.60-13.00 range. CMC Holdings traded 948,800 shares [0.1628% of its shares] worth 12.297m. CarGen traded 500 shares at an unchanged 48.50.
Kenya Airways was unchanged at 46.25 and traded a 46.00-47.00 range and 22,400 shares. This is a Basing Pattern at this Price.
Access Kenya fell 4.5% to close at 19.10 and traded 53,800 shares.
Nation eased 0.7% to close at 142.00 and traded 2,800 shares. Standard traded 3,600 shares at 37.00 |
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N.S.E Equities - Finance & Investment |
Standard Chartered rallied 1.646% to close at 247.00 and traded a session High 250.00 +2.88% into the Finish Line. Standard Chartered traded 4th overall at the Bourse with 41,300 shares worth 10.23m changing hands. Standard Chartered trades on a Trailing PE of 14.482 and a Running Dividend of 4.858%. Standard Chartered's shares are typically the tightest held of the Big Caps and shares are currently trading cum Rights and Few Folks are willing to cede their Rights, keeping the Price Firm. 257.00 is the all time High posted on 12 Jan 2007 and we are now very close to taking that out.
Standard Chartered Bank Kenya share price data from www.rich.co.ke http://j.mp/1MoR3I
Par Value: 5/- Closing Price: 243.00 Total Shares Issued: 271,967,808 Market Capitalization: 66,088M EPS: 16.78 PE: 14.482
Barclays Bank eased back 0.72% to close at 68.50 and traded a 67.50-69.00 range and 150,600 shares. Sellers have camped at 70.00 after a very strong rebound, which was further spiced by Talk of a Special Dividend. KCB was unchanged at 17.75 and traded a 17.70-17.95 range and 460,700 shares. I expect a pick up once the Rights Issue Data is published and confirms a strong Majority Take up of what is the biggest Rights Issue ever undertaken in the Region, near enough $200m. The Draw Down was preemptive ahead of the Rights and looks as if it nearing completion. COOP Bank rallied 10 cents to close at 14.75 and traded a 14.65-15.00 range and 457,900 shares. COOP Bank posted a string of New All Time Highs above 15.00 before retracing but that correction has now completed and the Price targets 15.00 which is the Pivot. Equity Bank retreated 1.05% to close at 23.50 and traded a 23.00-24.00 range and 301,300 shares. The Half year Results +46% Pre Tax confirmed the Bounce seen in the 1st Quarter was following through and had traction.
CFC StanBic was unchanged at 85.00 and traded an 85.00-86.00 range and 92,900 shares worth 7.900m. They have called a Special EGM [I believe] to confirm the hiving off of the Insurance Businesses and are giving their Investors a share in that. Buyers remain keen to participate in the unlocking of that Value. CFC StanBic has bounced more than 100% since 31st March.
CFC StanBic share price data from www.rich.co.ke http://j.mp/dqreug
HFCK retreated 2.33% to close at 21.00 and traded 145,600 shares. Someone was showing a Block of 1m shares for sale above the Market. DTB traded 6,900 shares at 89.00 -1.66%. NBK was unchanged at 39.25 and traded 11,000 shares. NIC was unchanged at 39.50 and traded 18,900 shares.
Centum retreated 1.524% to close at 19.35 and traded an 18.80-19.65 range and 59,700 shares.
Kenya Re firmed 0.44% to close at 11.35 and traded an 11.25-11.50 range and 237,800 shares. Jubilee eased 0.61% to close at 163.00 and traded 1,200 shares. PanAfric did not trade.
Olympia Capital closed lower at 7.30.
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N.S.E Equities - Industrial & Allied |
KenolKobil which has been caught in the KPRL's crosshairs bounced 1.5% to close at 10.20. They released a Press Statement yesterday confirming their Product had been released. KenolKobil traded 454,700 shares worth 4.637m. Total was unchanged at 29.25 and traded 2,700 shares.
BAT firmed 1.3% to close at 234.00 and traded 7,300 shares. BAT has returned 44.262% over a 12 month Period and this a Three and a Half Year closing High.
BAT share price data from www.rich.co.ke http://j.mp/aJsT6n
KPLC closed a shilling easier at 194.00 and traded 55,100 shares. It has retreated from just over 200.00 ahead of the GOK Preference Shares Conversion Ratio [and subsequent Dilution] announcement. KenGen retreated 0.58% to close at 17.00 and traded a 17.00-17.10 range and 193,200 shares. Cables closed 2.54% better at 20.25 and traded 172,800 shares.
Mumias Sugar was the 2nd most actively Counter. Mumias traded a 12.55-12.65 range and shaved off 0.4% to close at 12.55 with 1.060m shares worth 13.323m changing hands.
Sameer bounced 5% to close at 8.40 and traded 48,300 shares.
EABL was unchanged at 180.00 and traded 182.00 +1.11% into the close with 14,900 shares traded.
Bamburi Cement was unchanged at 198.00 and traded just 1,800 shares. ARM traded 7,000 shares at 143.00 +0.7%. 145.00 is the all time Closing High. Portland firmed 1.74% to close at 117.00 and traded 4,900 shares.
BOC Kenya traded a 1,000 shares at 142.00 unchanged. Carbacid traded 30,000 shares all at an unchanged 160.00 Crown Berger traded 2,000 shares at 32.00 -1.54% Eveready closed at 3.85 -1.28% on 83,200 shares. Unga fell 5.88% to close at 12.00 and traded 12,600 shares. |
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