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Satchu's Rich Wrap-Up
 
 
Thursday 11th of November 2010
 
Afternoon
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.

I did this Interview with Eleni on CNBC reference Safaricom Airtel
before the Earnings Release yesterday
http://bit.ly/d6Htmq

Thanks Eleni.

It was a pleasure to catch up with So Many People yesterday. Bob
Collymore [who later told me he gets Google Alerts on Safaricom and he
says Safaricom gets an outsize Media when compared to Vodacom - I did
know that in fact because I am quite immersed in that 24 Hour News
Stream - I told Sara Childress of the Wall Street Journal and Sara
Macgregor of Bloomberg about the time Google asked me to prove I was
not a Robot and I realised I was checking the News Flow every few
minutes on a continuous Basis - I have digressed], Michael Joseph,
Gina Din, Chris, Les. Bob is My Mindspeak Guest in December and I have
Buy In for a Live Stream onto Everyone's Mobile Phone [from Peter but
hopefully I can get all of that wrapped up at 6 today]. I have posted
my Tweets from the Results Release lower down and My Analysis of the 6
Month Results which beat the Street.

I wondered up the Road to try out Seven at ABC Place in the early
evening Twitpic
http://twitpic.com/35qww3

Good Vibe and a soothing Colour Schema. The Food was good and I was
rather tempted to try an Espresso Martini which seemed all the Rage at
the Bar.

The Latest Daily PodCast can be found here
http://www.rich.co.ke/rctools/richpod.php

The Star E-Float QE2 The Titanic
http://www.rich.co.ke/media/docs/016NSX0811.pdf

What is #Mindspeak ?
http://bit.ly/9mhe39

Martin O-O's Visual Presentation KCB at #Mindspeak is here
http://bit.ly/b8oKik

We are uploading the Video today.

Have you seen Jeff Koinange's #Mindspeak Session
http://bit.ly/1mPS6v

Its outrageously Good.

Part 1 Jeff and Oprah
http://bit.ly/ccmBmx

Part 2 Mend A Man called Jomo
http://bit.ly/9xBVqD

Macro Thoughts

I think Africa Tipped This Year

And I am so glad I took everyone to the Ghana Game at the World Cup.

Soccer City Soweto
http://bit.ly/cXKxRC

I wrote this for the Christian Science Monitor

South Africa spent a bundle on stadiums, but World Cup will pay off
http://bit.ly/atbEkq

Gold.
Soft Commodities.
I like the Aussie and the Rand on this Dollar Up Draft.

Home Thoughts

Sun Tzu Ultimate Excellence lies not in winning every Battle but in
defeating the Enemy without ever Fighting.

read more


Obama Says U.S. ‘Will Never Waver’ in its Defense of South Korea Bloomberg
Law & Politics

President Barack Obama said the U.S. “will never waver” in its
commitment to defend South Korea as he visited with U.S. troops in the
capital Seoul and marked Veterans Day.
Obama, who is attending the Group of 20 summit in the city, criticized
North Korea for continuing to follow “a path of confrontation and
provocation” and called on the nation to reject its nuclear weapons
program.

“The United States will never waver in our commitment to the security
of the Republic of Korea,” Obama said at the U.S. Army Garrison
Yongsan base in Seoul, according to the text of the speech distributed
in advance. “And along with the rest of the world, we have made it
clear that North Korea’s continued pursuit of nuclear weapons will
only lead to more isolation and less security.”

“It’s a contrast so stark you can see it from space, as the brilliant
lights of Seoul give way to utter darkness in the north,” he said,

A 2008 agreement between the U.S. and South Korea has capped the
number of U.S. troops at 28,500, and the two countries have also
agreed to transfer wartime operational control to Korea’s military on
April 17, 2012, the website says.

Obama arrived in Seoul yesterday to attend the G-20 summit that begins
this evening. It’s the latest stop on 10-day tour of Asia, where the
president is seeking to boost U.S. exports to help bring down an
unemployment rate that was 9.6 percent last month.

Conclusions

South Korea, India, Indonesia and Japan are key to the US Geopolitical
Strategy of keeping the Chinese pinned down.

read more


Currency Markets at a Glance WSJ
World Currencies


Euro 1.3802
Pound 1.6156
Yen 82.19 -> This has softened of late
Aussie 1.0062
India Rupee 44.242
Brazil Real 1.7071
Rand 6.8601

The euro recovered from touching a one-month low to pull ahead of the
dollar after being whipsawed by quantitative easing, sovereign-debt
fears and a weak 30-year Treasury auction.The common currency fell
below $1.37—at $1.3671—early as Ireland highlighted concerns that
weaker members of the bloc of euro-using nations couldn't meet debt
obligations.The difference between the yield for 10-year Irish
government bonds and the yield for German bunds—the euro zone's
standard bearer—hit the widest point to date. At the same time, the
cost of protecting Irish, Portuguese and Spanish sovereign bonds from
default closed near records in London.

Conclusions

I think Recent Counter Trend Dollar Strength will run its course and
in part is because QE2 has not hit the Water yet.

Euro Dollar 1 Month Chart INO 1.3791
http://bit.ly/cpSAgf

read more




CME Raises the Cost of Trading Margin Requirements Jump for Silver and Soybeans WSJCME Raises the Cost of Trading Margin Requirements Jump for Silver and Soybeans WSJ
Commodities

Commodities exchanges are raising the cost of trading everything from
soybeans to silver, amid the wave of speculative money that has
flooded into the markets, increased volatility and sent prices new
highs.On Wednesday, CME Group increased "margin requirements," or the
minimum deposit a trader is required to pony up, for trading soybeans
futures contracts. This follows a similar move by the Chicago exchange
late Tuesday on silver futures, triggering a broad selloff among all
precious metals.

The selling continued and accelerated on Wednesday. Silver slumped
$2.0410, or 7.1%, to $26.8610 a troy ounce, with palladium and
platinum shedding 6.2%.

Conclusions

This Play was tried and in fact worked in the Silver Markets many
Years ago when The Bunker Hunts were on their Silver Squeeze. This
Time around it will be a little like King Canute. The Deluge into
Commodities is set to become a Tsunami Wave, a stampede as The World
gets flooded with Cheap Dollars.
Aly-Khan Satchu
www.rich.co.ke

read more


Live Crude Oil chart 88.41 Last 2 Year Highs
Minerals, Oil & Energy


The price of the light, sweet crude-oil futures contract for December
delivery rose $1.09, or 1.3%, to $87.81 a barrel on the New York
Mercantile Exchange. The contract hit an intraday high of $88.10, the
highest for a front-month contract since October 2008.

Conclusions

Headed higher.

read more



Soft Commodities at a Glance INO
Commodities

Cocoa -0.46%
Coffee -2.26%
Cotton -0.27%
Sugar -1.1%

Conclusions

Disciplined well ordered shallow Retracement.

read more


Lichtenstein’s $43 Million Pouting Redhead Helps Revive Market Bloomberg
Misc.

Roy Lichtenstein’s 1964 painting of a pouting redhead sold for an
artist record $42.6 million last night at Christie’s International in
New York, as buyers stuck with 1960s pop art to sustain a market
recovery.

Lichtenstein’s “Ohhh...Alright...” soared past his previous auction
peak of $16.3 million, to help the closely held auctioneer reach
$272.9 million in sales for the evening, its biggest total in the
category since May 2008 and nearly four times last year’s result. The
tally brings the sum for the three-night autumn series of postwar art
auctions, including sales by rivals Phillips de Pury & Co. and
Sotheby’s, to $632 million, almost triple the $216 million a year ago.

“The patient has made a full recovery,” said New York art adviser
Stefano Basilico. “Not that we are back to 2007, to those crazy
levels, but we are back to healthy, good shape.”

Bids are placed on "Ohhh...Alright," a 1964 painting by Roy
Lichtenstein, at the Christie's International Post-War and
Contemporary Evening sale in New York. Photographer: Michael
Nagle/Bloomberg

read more


South Korean Stocks Plunge in Last Minute of Trading Bloomberg
Asia

South Korean stocks plunged in the last minute of trading, as the
expiration of options contracts spurred the largest-ever sales of
equities by foreign investors.The Kospi index slid 53.12, or 2.7
percent, to 1,914.73 at the 3 p.m. close, the biggest drop since May.
The benchmark measure’s decline dragged down a measure of regional
equities, with the MSCI Asia ex-Japan Index slipping 0.3 percent.
Samsung Electronics Co., Asia’s biggest maker of chips, flat screens
and mobile phones, and Hyundai Motor Co., South Korea’s largest
automaker, declined more than 2 percent in Seoul trading.

“There was a massive foreign selloff on the expiry day that’s presumed
to have dragged down the index at the last minute of trading,” said Im
Jeong Jae, a fund manager in Seoul at Shinhan BNP Paribas Asset
Management Co., which oversees $28 billion of assets.

Overseas investors sold a record net 1.34 trillion won ($1.2 billion)
of shares listed on the mainboard Kospi today, Korea Exchange Inc.
said. The previous record was May 7, when foreigners sold a net 1.25
trillion won of equities, the bourse operator said in an e-mailed
statement.

Program selling contributed to today’s decline, said an exchange
official, who declined to be named. Stock markets are often volatile
on the expiration day because of a pickup in program trading.

Conclusions

The Chinese ? That would be too much but not entirely off the Reservation.

read more


Vodafone, Bharti Struggle to Squeeze Profit From African Deals Bloomberg
Information & Communication Technology

For Vodafone Group Plc, Bharti Airtel Ltd. and other phone companies
with more than $90 billion invested in Africa, making money from each
user in the world’s fastest-growing market is turning into the biggest
challenge.The number of operators is prompting a race to the bottom on
call rates. In Tanzania, which has seven phone companies, prices have
fallen 90 percent over the past 18 months. Companies also face among
the world’s highest “churn” rates, with users frequently changing
operators, and patchy infrastructure, all of which make returns on
investment difficult.

“It is hard,” said Pieter Uys, chief executive officer of Vodacom
Group Ltd., which is controlled by Vodafone and is the largest
provider of mobile-phone services in South Africa and Tanzania. “You
have to do business in a very different way, you have to build data
networks, find other ways to grow revenue.”

Phone operators gathered at Africa’s telecommunications conference
that began yesterday in Cape Town want to sell services to the 50
percent of the market that doesn’t have mobile phones. They also want
to service current customers more cheaply, without losing user
loyalty, while stemming declines in average revenue per user, or ARPU,
by offering newer services such as mobile Internet, banking and other
money transactions.

“We are now dealing with an ecosystem that’s changing very, very
fast,” Andile Ngacaba, chairman of Dimension Data and Convergence
Partners, said at the conference. “On the one side, we see this
subscriber growth and growth in data and data applications. On the
other side, we see this decrease in ARPUs. This requires new models of
investment such as infrastructure sharing.”

Operators have been lured to the continent by its promise. Africa has
a mobile-phone population of about 445 million handsets, according to
a McKinsey & Co. report. It took 20 years for the size of the
mobile-phone population to reach 200 million, and less than three
years to get to the next 200 million, according to the report.

Africa has “become the fastest-growing region in the global cellular
market, going from fewer than 2 million mobile phones in 1998 to more
than 400 million today,” it said.

The mobile value-added services market in Africa was worth $4.5
billion in 2009, and over the next five years is forecast to grow at a
compound annual growth rate of 20 percent, generating $11.5 billion by
2014, Informa Telecoms & Media, a London-based consultant, said in its
Rural Connectivity Report in Africa published this month.About 80
percent of the sales were from messaging, while mobile Internet
contributed 14 percent and mobile entertainment such as music and
television 3.5 percent, the report showed.

Internet and broadband penetration is still in single digits, Uys said.

In order for mobile operators to “capture this opportunity,” the
market needs consolidation, McKinsey said. “The industry structure
should be rationalized, for example, because many markets, even
smaller ones, have four or more players.”

Competition on the continent is fiercer now than it has ever been. In
the Democratic Republic of Congo and Tanzania, mobile-phone tariffs
plunged between 50 percent and 60 percent in the six months through
September.

Prices in Kenya have been slashed to such an extent that Safaricom
Ltd. Chief Executive Officer Bob Collymore said India’s Bharti, which
bought most of Zain’s African operations last year for $9 billion, is
losing money on as much as 50 percent of its voice traffic.

Safaricom has an 86 percent share of the market and is 40 percent held
by Newbury, England-based Vodafone. Bharti’s head of African
operations, Manoj Kohli, declined to comment on Safaricom’s remarks.
“We can’t comment on our competitors’ claims,” Kohli said.

On Aug. 18, Bharti halved tariffs in Kenya to 3 shillings, Les
Baillie, a spokesman for Safaricom said. Safaricom “knew that voice
was always going to become a commodity,” Baillie said. “It was not
expected that it would happen so rapidly though.”

Companies are scrambling to adapt their operations to the new climate.

In South Africa, Vodacom, which is 65 percent owned by Vodafone, is
investing in data networks. Data now accounts for more than 50 percent
of its traffic and is growing at more than 50 percent a year, Uys
said.The company is also pushing smart devices that are able to browse
the Internet to low-end segments with touchscreen phones that retail
at 499 rand ($73). Once users have an improved mobile-browsing
experience, data consumption increases, Uys said

Infrastructure sharing and outsourcing of towers has been punted for
years. Now, faced with greater competitive pressure, companies are
beginning to act.

Last month, Vodafone signed an agreement with Eaton Towers to manage
its 750 towers in Ghana. On Nov. 5, American Tower Corp. agreed to buy
3,200 towers from Cell C Ltd., South Africa’s third-largest mobile
phone services provider, in a deal worth $430 million.

“We are going to see more and more of those type of deals happening,”
said David Lerche, a telecoms analyst at Johannesburg-based Avior
Research. “There are lots of little tower companies running around
trying to position themselves as tower outsourcers. It’s quite an
interesting development.”

For all its challenges, the market is still attractive, Marc Rennard,
vice president of Orange Mobile for Africa, Middle East and Asia, said
in an interview.

While investor interest has waned a little, “we are profitable, the
big players, the five, six main players are profitable,” he said.
“It’s still a good industry.”

Conclusions

I actually believe these Uber Mobile Phone Companies have performed an
outstanding service in that They have connected all the Mass of Man
Kind to the c21st.

Light Shining in the Dark Continent- one mobile at a time World Bank Blog
http://bit.ly/axUxX1

Light Shining in the Dark Continent- one mobile at a time
Submitted by Aly-Khan Satchu on Fri, 09/17/2010 - 16:33

I am encouraged that the self-educated child I met when my car broke
down on the Kenyan coast can monetize his intellectual capital using
mobile technology.

My point of departure is one of my favourite novels, “A House for Mr.
Biswas”,  and a scene that has stayed imprinted on my memory's
mausoleum forever. The scene is one where this young boy is describing
see the lights of a car approach and then drive by.  The car was a
symbol for the new century and that was the closest it got.  Four
years ago, my car broke down on the Mombasa-Nairobi road and this
young boy emerged out of the bush and started to talk to me.  And he
said he spoke Latin.  He had found a Latin primer and taught himself
the language and when tested, he was quite proficient.  Yet like the
boy in a “House for Mr. Biswas”, he was watching the world go by until
that day- the day my car broke down.

Ten years ago, there were 15,000 mobile phones in Kenya.  At some
point, this year, there will statistically be one mobile phone per
adult.  That is a laboratory experiment right there.  Consider that
within that decade, the super spike has been towards the end. In fact,
more Kenyans have a mobile phone than access to a clean toilet. The
information age has trumped sanitation.

And it is the mobile phone that is the entry ticket for more than 1
billion Africans to join and converge with the 21st century. That
little boy on the side of the Mombasa-Nairobi road, who speaks Latin,
can now finally monetize his intellectual capital. He could not
before. This is a disjunctive moment.  There was a famous Economist
front cover “Africa: The Dark Continent”, well, the light just got
switched on.

As a side note, I sense the next tipping point is when the smart phone
device costs a $100.00 or less, which cannot be that far away.

In his Development Outreach article, Iqbal Z. Quadir talks of “the
positive economic impact of mobile phones is so profound that it
elucidates the general power of productivity tools in creating
individual and collective prosperity from the bottom up” and I think
it is easy to miss the grass roots and bottoms up nature of this
revolution.  The mobile phone is the equivalent of teaching people to
fish in the 21st century.

I think the World has flattened and that a Lot of Human Capital is
entering the Game at a very low cost now. Furthermore, that the Pipe
is now all bout Data.

Further Conclusions

The Bet is a near perfect One on the Information Century. The
Investment will pay off. However, Markets will no longer allow
Companies to throw money at it, ad infinitum.

read more


Dollar versus Rand INO 6.8532
World Currencies

Conclusions

I look for an eventual move through 6.61 and the Optimal Buy Area was
above 7.00 as I said when it did pop over there.

read more


South Africa All share Bloomberg Visual +14.317% 2010 29 Month Closing Highs
Africa

Value31,627.04   
Change109.210    
% Change0.347

Conclusions

Looks set to pierce All time Highs of 33,333 from 2008.

read more


Nigeria All Share Bloomberg Visual +22.033% 1 Year
Africa

Value25,416.21   
Change32.840    
% Change0.129

read more


Safaricom 1st Half PAT +15.9% Results Analysis share data here
N.S.E Equities - Commercial & Services

Par Value:                  0.05/-
Closing Price:          4.75
Total Shares Issued:          40,000,000,000
Market Capitalization:        19,000M
EPS:            0.38
PE:                12.500

Swot Analysis Key Highlights 6 months to  30 Sep 2010 versus to 30 Sep 2009
EPS 0.193 versus 0.168 +14.9%
Revenue 47.111850b versus 40.660829b +15.9%
PAT 7.630591b versus 6.631898b +15.1%
16.71m Customers
CAPEX was 10.1b
Customer Market share 76.7% from 78.3 -> Note Well They lost only 1.6%
Data Revenue as a Percentage of Total Revenue 23.8% versus 17.7% in Sep 2009
Blended ARPU 456.6 versus 466 previous
Kenya Data 3.61m #Data Users 9% of #Kenya Population

Conclusions

These are Strong Results and have outperformed the Street - The Bharti
Airtel earnings release [and the Risk of an Impairment in the share
Price if this Africa Confetti Strategy is pursued much longer] I think
marks a turning of the Tide. They have delivered a 15.9% PAT Increase
at a time of 'Irrational' Competition, played muscular Defence self
evidently - the market share loss was less than 2% - and They are way
ahead on the Data Information Century with 3.61m #Data Users some 9%
of #Kenya's  Population.

Therefore 0.193 x 2 looks eminently feasible + There was a Strong 2nd
Half Skew and Bias last time around.

0.386 x 15 = 5.79.

Therefore as of today 11th November I have a shilling off Headroom.

I said the Following to Bloomberg and Businessweek Here
http://bit.ly/bCogKt

“They outperformed market expectations,” Aly-Khan Satchu, an
independent financial analyst, said in an interview in Nairobi. “We
are going to find this year that data is going to reach a tipping
point and they are showing they can lead.”

“As we had anticipated data is proving to be the next frontier,
delivering very significant benefits,” Collymore said. The number of
data subscribers grew 92 percent to 3.6 million in the past 12 months,
he said.

I said the Following to Reuters
http://bit.ly/aWYXh1

'Bharti Airtel's strategy is on borrowed time,' said Aly Khan Satchu,
a Nairobi-based independent trader.

My Tweets from the Results Presentation

#Safaricom #Kenya 753,000 Individual Shareholders #Kenya #Africa
#Safaricom #Kenya Airtel will give us a run for the Money but not the
current Lot @bobcollymore
#Safaricom Q and A I do not want to trivialize my Competitors @bobcollymore
#Safaricom #Kenya Minute Consumption Minutes Factory Model
@bobcollymore Does not work
#Safaricom #Kenya www.rich.co.ke How long can Airtel cross subsidize
You need to ask Our Competitor ? #Africa about 15 hours ago via web
#Safaricom #Kenya Q and A Session www.rich.co.ke Incomers will get
their Fingers burnt @bobcollymore about 15 hours ago via web
#Safaricom @bobcollymore Our Dealers Distribution key to our Success
#Safaricom #Kenya @bobcollymore Shareholders in AIRTEL need to ask for
how long they are prepared to allow them to throw away Money
#Safaricom #Kenya @bobcollymore outlining The Future www.rich.co.ke
The Best placed Player in the #Data Space 9.33% of #Kenya Population
about 16 hours ago via web
#Safaricom #Kenya blended ARPU 456.6 versus 466 previous
www.rich.co.ke Africa VOD.L www.rich.co.ke about 16 hours ago via web
#Safaricom #Kenya Mobile Chris Tiffin - Revenue +15.9% EPS +14.9%
www.rich.co.ke Data Revenue +55.5% 23.8% of total Revenue v 17.7%
previous
#Safaricom #Kenya pays dividends to 180,000 shareholders via M-Pesa
www.rich.co.ke about 16 hours ago via web
#Safaricom #Kenya Data 3.61m #Data Users 9% of #Kenya Population
www.rich.co.ke about 16 hours ago via web
#Safaricom #Kenya supplied 400,000 Smart Phones 1st Half
www.rich.co.ke about 16 hours ago via web
#Safaricom #Kenya Customer share 76.7% versus 78.3% @bobcollymore
outlining Strategy Total Communications Services Providor
# #Safaricom #Kenya 0.19 EPS 47.11b Turnover #Africa www.rich.co.ke
about 16 hours ago via web
#Safaricom 1st Half #Data proving to be next Frontier @bobcollymore
www.rich.co.ke highlights 596.84b cumulative value M-Pesa 13.5m Users
#Safaricom #Kenya 1st Half www.rich.co.ke VOD.L @bobcollymore steps up
#Safaricom 1st Half #Kenya showing a #Movie www.rich.co.ke about 16
hours ago via web
#Safaricom #Kenya #Mobile The Vodafone Bharti Airtel Proxy War
www.rich.co.ke Africa Information Mobile Century
#Safaricom before the Earnings release Safaricom Headquarters
www.rich.co.ke http://twitpic.com/35klbw
#Safaricom #Kenya Mobile #Africa a c21st Story www.rich.co.ke Michael
Joseph is waiting for @ bobcollymore about 17 hours ago via web
#Safaricom 1st Half 2010 Its very high Drama wonder if Sunil Mittal
has some Espionage www.rich.co.ke #Kenya about 17 hours ago via web
#Safaricom 1st Half #Kenya Gina Din- just sat behind me #Safaricom
#Kenya www.rich.co.ke #Africa about 17 hours ago via web
Sitting with Sara Childress of @wsjafrica and Sara McGregor Bloomberg
#Safaricom results 330 release www.rich.co.ke about 17 hours ago via
web

read more


Cooperative Bank of Kenya Nine-Month Pretax Profit Jumps by 54% Bloomberg
N.S.E Equities - Finance & Investment

Cooperative Bank of Kenya Ltd., the East African nation’s
fourth-biggest lender by market value, said nine-month profit surged
54 percent as income from loans increased.
Net income climbed to 4.38 billion shillings ($54.4 million) in the
period through September, from 2.85 billion shillings a year earlier,
Managing Director Gideon Muriuki told reporters today in Nairobi, the
capital. Net interest income, the amount banks earn from interest on
loans, increased 30 percent to 6.37 billion shillings, he said.

COOP Bank share price data and 3rd Quarter Results here +133.492% 1 Year
http://bit.ly/26xEpC

Par Value:                  1/-
Closing Price:          19.95
Total Shares Issued:          3,492,369,920
Market Capitalization:        69,673M
EPS:            0.85
PE:                23.471

read more


Moody's assigns Ba1 rating to first-time Eurobond of PTA Bank Reuters
World Of Finance

Reuters has stopped distributing the full text of Moody's Investors
Service press releases on ratings actions, effective April 1, 2009.
The text of this Moody's Investor Service rating is available at
www.moodys.com.

read more




 
 
N.S.E Today

This is a little potted because Sohail has asked me to get to CVS
Plaza for an Interview on Aljazeera's Inside Story  and from there I
have to scoot over to Safaricom House.

The NSE20 closed down 34.97 points at 4587.49 and has retreated about
3% from its 2010 and 27 month Closing High posted October.
The NASI was down 0.28 points at 101.36.
Market Cap was 1.209089 Trillion versus 1.212486 Trillion.
Equity Turnover was 334.722m versus 399.171m.

I believe we are nearing the end of this Draw Down and the Big Caps
EABL [looks poised to bust through all time Highs] and Safaricom
[oversold and Relief Rally expected] to lead the push higher over the
next few sessions.



N.S.E Equities - Agricultural

Kakuzi closed higher at 91.50.



N.S.E Equities - Commercial & Services

SAFARICOM

shares volume 5,518,700
total turnover 26,194,960
avg price  4.75 CLOSING PRICE 4.75 +1.06%
high price 4.80
low price 4.70
last price 4.75

Conclusions

Safaricom reported 1st Half Profit after Tax at +15.9% and that Beat
the Street Estimate, which Estimate had been blitzkrieged by the
Airtel Media Offensive. Safaricom played very good Defence as Zain
charged head on in Voice and some outstanding Offence on the Data
Front. I expect the Price to rebound from here because it had just
about everything including the Kitchen Sink in it. Please see analysis
above. Safaricom traded 5.518m shares worth 26.194m.

Kenya Airways retreated 1.15% to close at 42.75 and traded 78,700
shares and has given back its Post Results PBT +66% related Bounce.



N.S.E Equities - Finance & Investment

Diamond Trust reported 3rd Quarter EPS +119.54% ahead of the 2009
Scorecard. DTB's implied Forward PE is now clustering at 10.00 which
looks a Value Proposition. DTB traded a 126.00-130.00 range and firmed
a shilling to close at 127.00 and traded 278,300 shares worth 35.527m
which made it 3rd most active at the Bourse in todays session.

Diamond Trust Bank reports 3rd Quarter EPS +119.54% share data here
http://bit.ly/4A8Khs

Equity Bank traded 2nd. Equity Bank firmed 0.945% to close at 26.75
and traded a 26.50-27.00 range and 1.656m shares worth 44.475m. Equity
Bank looks set to test 27.00 its 2010 and 27 Month Closing High.
COOP Bank reported  Nine-Month Pretax Profit at +54% this morning.
COOP Bank was unchanged at 20.00 and traded a 20.00-20.25 range and
1.015m shares worth 20.391m.
KCB closed at 22.00 and traded 173,600 shares. I have uploaded the CEO
Martin O-O's Mindspeak Presentation here
http://www.rich.co.ke/rctools/richtv.php and its worthy of a listen.
The Forward Implied PE is below 9.00. The share looks oversold here
and hence the non existent Volumes.
StanChart traded 19,700 shares unchanged at 269.00.



N.S.E Equities - Industrial & Allied

EABL was the most active share at the Nairobi Bourse. EABL eased a
shilling to close at 214.00 but was trading at 217.00 +0.93% into the
Close. EABL traded a session high of 220.00 which is an all time High
Print and has registered a 61.582% 1 Year Absolute Return ex
Dividends. EABL traded 466,200 shares worth 99.761m. EABL looks set to
close at new all time Highs imminently.

EABL share price data from www.rich.co.ke +61.582% 1 Year
http://bit.ly/57wrgL

Par Value:                  2/-
Closing Price:           215.00
Total Shares Issued:          790,774,336
Market Capitalization:        170,016M
EPS:             9.09
PE:                 23.652

Mumias Sugar closed 5 cents easier at 10.05 and traded 1.216m shares.
Raw Sugar is at 30+ Year Highs.

KenGen dipped 15 cents to close at 17.05 and traded 486,400 shares.
KPLC eased 1.83% and closed at 214.00 and traded 23,500 shares. It
trades heavy ahead of the Rights Issue Pricing.

KenolKobil firmed 5 cents to close at 10.80 and traded 1.417m shares.
KenolKobil announced its expansion into mozambique and Zambia
yesterday and has a strong regional Foot Print.
Total traded 7,700 shares and closed at 30.00.



by Aly Khan Satchu (www.rich.co.ke)
 
 
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November 2010
 
 
 
 
 
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