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Satchu's Rich Wrap-Up
 
 
Monday 15th of November 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

I do thank Dorothy Ooko for the Invitation to the N8 Launch at the
Sankara. Thanks Dorothy.

#Aljazeera Inside Story The Robin Hood Tax with Dareen Abughaida
http://bit.ly/abX4b1

Supporters of the Robin Hood tax are calling on world leaders gathered
in South Korea for the G20 summit to listen to their people rather
than to the banks.They argue that banks that were bailed out over the
past two years are now back to business as usual but that a global
Robin Hood tax would mean the world's banks pay to reduce the deficits
they helped to cause, removing the need for austerity measures.But
will world leaders heed these calls and is the Robin Hood tax a
feasible idea?

Inside Story, with presenter Dareen Abughaida, discusses with guests:
Max Lawson, a senior policy adviser at Oxfam and a spokesperson for
the Robin Hood Tax Campaign; Simon Hills, an executive director at the
British Bankers Association; and Aly Khan Satchu, a financial analyst
and CEO of www.rich.co.ke

This episode of Inside Story aired from Thursday, November 11, 2010.

Light Shining in the Dark Continent- one mobile at a time Submitted by
Aly-Khan Satchu on Fri, 09/17/2010
http://bit.ly/axUxX1

Martin O-O CEO KCB at #Mindspeak RICH TV
http://www.rich.co.ke/rctools/richtv.php

Check it Out -

The Actual Presentation that was projected onto the Screen
http://bit.ly/b8oKik

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

The Next #Mindspeak is Saturday 27th November and we are hosting Liza
Mucheru-Wisner
http://lizawisner.com/wordpress/

I thank Alishia for todays Interview on CNBC
http://bit.ly/aTKGix

CNBC Interview with Eleni about Safaricom and Bharti Airtel
http://bit.ly/d6Htmq

Macro Thoughts

Home Thoughts

We drove around the Nairobi National Park yesterday Evening and it was
really very soothing and therapeutic. We came across a Lioness sitting
patiently in the Long Grass, watching a Herd of Buffalo.

Children and Warthogs have the right of way Nairobi National Park
http://bit.ly/cF6xen

Zebras in the Nairobi National Park
http://bit.ly/c5XjzL

I read some Kabir and Jonathan Frantzen over the weekend.

My Kabir Tweets

Songs of #Kabir Between the Poles of the Concious and the Unconcious
there has the Mind made a Swing.
Songs of #Kabir Thereon hang all Beings and all worlds, and that Swing
never ceases it's Sway
Songs of #Kabir Millions of Beings are there The Sun and the Moon in
their courses are there Millions of ages pass
Songs of #Kabir And The Swing goes on. All Swing! The Sky and the
Earth and the Air and the Water
Songs of #Kabir A beautiful #Legend tells us that after his Death his
Mohammedan and Hindu disciples disputed the possession of his Body
Songs of #Kabir the Mohammedans wished to bury the Hindus to burn As
they argued Kabir appeared before them and told them to lift the
Shroud
# Songs of #Kabir They found in the place of the Corpse a heap of
Flowers Half buried in Maghar and half burned in Benares
www.rich.co.ke

Frantzen is a whole different Ball Game compared to Kabir. I always
get very embarrassed reading about Sexual Liaisons in Literature but
Frantzen is just unbelievable gripping and realistic.

read more


The Digital Disruption Connectivity and the Defusion of Power Foreign Affairs By Eric Schmidt and Jared Cohen
Information & Communication Technology

The advent and power of connection technologies -- tools that connect
people to vast amounts of information and to one another -- will make
the twenty-first century all about surprises. Governments will be
caught off-guard when large numbers of their citizens, armed with
virtually nothing but cell phones, take part in mini-rebellions that
challenge their authority. For the media, reporting will increasingly
become a collaborative enterprise between traditional news
organizations and the quickly growing number of citizen journalists.
And technology companies will find themselves outsmarted by their
competition and surprised by consumers who have little loyalty and no
patience.

Today, more than 50 percent of the world's population has access to
some combination of cell phones (five billion users) and the Internet
(two billion). These people communicate within and across borders,
forming virtual communities that empower citizens at the expense of
governments. New intermediaries make it possible to develop and
distribute content across old boundaries, lowering barriers to entry.
Whereas the traditional press is called the fourth estate, this space
might be called the "interconnected estate" -- a place where any
person with access to the Internet, regardless of living standard or
nationality, is given a voice and the power to effect change.

although it remains uncertain exactly how the spread of technology
will change governance, it is clear that old solutions will not work
in this new era. Governments will have to build new alliances that
reflect the rise in citizen power and the changing nature of the
state.

Activists and technology geeks are rallying political "flash mobs"
that shake repressive governments

RIDING THE TSUNAMI

States in the developing world -- grouped here as "partially
connected" nations -- face a different set of opportunities and
challenges in incorporating connection technologies. The stakes are
especially high for those with weak or failed central governments,
underdeveloped economies, populations that are disproportionately
young and unemployed, and cultures that lend themselves to opposition
and dissent, and also for those contending with outside pressures from
large and engaged diasporas living in technologically advanced
nations. The sudden influx of connection technologies into these
societies will threaten the status quo, leaving fragile governments in
potentially unstable positions.

Conclusions

Submitted by Aly-Khan S. (Mar. 28, 2009) on November 13, 2010 - 5:20am.

The Image that comes to My Mind about this New Connected World is one
from Gulliver's Travels. Gulliver is the State, Citizens are the
Lilliputians and the Connected World is the Net with which the
Citizens can re capture their State. We remain in the 'Garage' or
'Start-Up' Phase of this New Dispensation but the Trend is going one
way.

However, the Fact remains that the Uber Connectors [Google Twitter
Facebook] occupy a very Powerful Position. They are the Custodians of
the World's Information and even Market Makers in the same in what is
an Information century. It is a Monopolistic Position in a
predominantly c21st Information Landscape.

It is naive and disingenuous not to see how The State [China for
example] would view Google as inimical to their National Interest/

Aly-Khan Satchu
www.rich.co.ke

read more


Currency Markets at a Glance WSJ
World Currencies

Euro 1.3674 The euro clawed its way up from a six-week low against the
dollar Friday Ireland issued multiple denials that it is on the verge
of requesting an emergency European Union lifeline.
Pound 1.61
Yen 82.91 - has fallen over 2 Big Figures over the last few sessions
Aussie 0.9823
Rand 6.9606
Brazil Real 1.7216
India Rupee 45.13

The Dollar looks stretched now  but then could stretch some more.

Euro Versus Dollar 3 Month Chart 1.3663
http://bit.ly/bxIoJI

read more




Live 24 Hour Spot Gold Price KITCO 1366.30
Commodities

Gold retreated sharply Friday as Commodities got routed.

read more


Live Crude Oil chart 85.00 Last
Minerals, Oil & Energy

Crude-oil futures lost more than 3% Friday.

read more


Soft Commodities at a Glance INO
Commodities

Cocoa -3.58%
Coffee -1.82%
Cotton -2.84%

Conclusions

Quite a Sell Off last Week. With Sugar brutalised.

Sugar March 2011 INO 26.21 Last
http://bit.ly/aIn4QP

Last Price    26.21
Open    29.15
High    29.20
Volume    139,890
Expiration    2011-02-28
Open Int.    247165
Contract High    33.39 Contract High Date    2010-11-11
Contract Low    11.9
First Delivery    2011-05-15

Has fallen 21.05% from 33.39 Levels 11th November in a Brutal Sell Off.

read more


"Shooting Into the Corner" (2008-09) by Anish Kapoor Bloomberg
Misc.

"Shooting Into the Corner" (2008-09) by Anish Kapoor. The work will be
exhibited in a Bollywood production house, the Mehboob Film Studios,
in Mumbai, from Nov. 30 to Jan. 16, 2011. Photographer: Dave Morgan
via Bloomberg

read more


Africa Crosses 500 Million Mobile Subscriptions Mark Cellular News
Information & Communication Technology

The number of active mobile subscriptions in Africa crossed the
half-a-billion mark in 3Q10, to reach 506 million at end-September,
according to research by Informa Telecoms & Media. At end-3Q10, Africa
accounted for 10% of the world's mobile subscriptions and was one of
the world's fastest-growing regions - with the subscription numbers
increasing 18% over the year to September - as a result of the still
low mobile penetration rate on the continent as well as demand for new
services, such as mobile Internet access, that increase the need for
telecoms connectivity.

"By 2015, there will be 265 million mobile broadband subscriptions in
Africa, a huge increase from the current figure of about 12 million,
and accounting for 31.5% of the total of 842 million mobile
subscriptions that the continent will have in five years' time,
according to forecasts by Informa Telecoms & Media. There will be
almost 360 million users of mobile-money services on the continent by
2014."

The rate of household broadband penetration in Africa was just 2.5% in 1Q10.

Africa's first mobile network was launched in Tunisia in 1985, so 2010
marks the twenty-fifth anniversary of mobile telephony on the
continent.

Conclusions

Plenty of Growth ahead.

read more


Africa: Coke's Last Frontier Businessweek
Retail & Manufacturing

Piles of trash are burning outside the Mamakamau Shop in Uthiru, a
suburb of Nairobi, Kenya. Sewage trickles by in an open trench. Across
the street, a worker at a bar gets ready for the lunch rush by
scraping the hair off a couple of roasted goat heads. It's about 70
degrees, the sun is beating down, it smells like decay, and it's time
for Coke to move some product. Annual per capita consumption of
Coca-Cola (KO) in Kenya is 39 servings. In more developed countries
like Mexico, which consumes more Coca-Cola than any other country, it
runs 665 servings per year. One does not need an MBA to see the
possibilities.

Two, in fact, have just walked in. The pair wear short sleeves and
jeans. They reach into a refrigerated cooler, grab two Cokes in glass
bottles, and pull up two overturned red crates for chairs. Mamakamau
Kingori, proprietor, 39, bustles up in a patchwork-quilt apron to take
their money. The 500-milliliter sodas cost 30 Kenyan shillings (37
cents) each. As is often the case in Africa, the customers enjoy the
drink on the premises, the deposit on the bottles being too dear.

Such a transaction happens about 72 times a day at Mamakamau's, and
that has earned her the status of a "Gold" vendor, the highest level
awarded by the local bottler. Kingori's sundry store—known locally as
a "duka"—also sells plastic buckets and mattresses, and is no larger
than a small bedroom. Her Gold status brings benefits, like an
introduction to Coke's globally standardized selling techniques. She's
urged by Coke to promote combo meals to boost profits, and so red menu
signs supplied by the beverage company suggest a 300-milliliter Coke
and a ndazi, which is a kind of greasy donut, for 25 Kenyan shillings.
Coke also paid for the red refrigerated drink cooler at the entrance
to the shop, which is protected by a blue cage. She's told to keep it
full to draw attention, and to stock it according to a diagram inside:
Coca-Cola always at the top, Fanta in the middle, large bottles on the
bottom. At stores down Naivasha Road, and throughout the continent and
the rest of the world, Coke fridges are stocked in similar fashion.

Chasing shillings in Nairobi is the sign of both a healthy company
expanding its borders and an empire so mature that it must, for its
last great push, reach into many of the most war-torn and impoverished
countries on earth. Chief Executive Officer Muhtar Kent may not be
weeping, like Alexander the Great, at the prospect of having no worlds
left to conquer, but with Coke sales stagnant or plodding in most of
its developed markets—North Americans bought $2.6 billion worth of
Coke in 1989 and just $2.9 billion 20 years later—Coca-Cola will rely
on some of the poorest nations to generate the 7 to 9 percent earnings
growth it has promised investors. That means, from the dukas of
Nairobi to the "tuck shops" of Johannesburg, Africa's mom-and-pop
stores are a major front in Coke's growth plan, not only for the
flagship soda but also for the company's huge stable of waters,
juices, and other soft drinks.

Coke has been in Africa since 1929 and is now in all of its countries;
it is the continent's largest employer, with 65,000 employees and 160
plants. Its market share in Africa and the Middle East is 29 percent,
which adds up to 9.1 billion liters of beverages a year. Pepsi's share
is 15 percent. But now the small shops in the back alleys have become
more important, as Coke wagers on Africa finally emerging as a viable
market in the next 20 years, riding a hoped-for wave of improving
governance and demographics. Coke is now in a street-by-street
campaign to win drinkers, trying to increase per-capita annual
consumption of its beverages in countries not yet used to guzzling
Coke by the gallon. To do so, Coca-Cola is applying lessons learned in
Latin America, where an aggressive courtship of small stores helped
boost per-capita consumption in Mexico to the highest in the world.

"You've got an incredibly young population, a dynamic population. Huge
disposable incomes. I mean, $1.6 trillion of GDP, which is bigger than
Russia, bigger than India," he says, leaning into the table. "It's a
big economy, and so rich underground. And whether the next decade
becomes the decade of Africa or not, in my opinion, will depend upon
one single thing—and everything is right there to have it happen—and
that is better governance. And it is improving, there's no question."

Conclusions

Opinion Pieces for The Star

11-JAN-2010 Africa's Reasons For 2010 Optimism
http://bit.ly/8zQZP7

05-JUL-2010 World Cup Benefits more Than Money
http://bit.ly/94jnfx

Wal-Mart could lead corporate America into Africa By Aly-Khan Satchu
September 28, 2010 CS Monitor
http://bit.ly/9ASLGt

Walmart Bid Boosts Continent On Global Investment Radar AllAfrica
http://bit.ly/bwyJhd

Big purchases like Walmart's "were a wake up to the rest of the world
that Africa is popping up on the radar screens," said Aly Khan Satchu,
a Nairobi-based independent investment analyst.

read more



South Africa All Share Bloomberg Visual +13.9304% 2010
Africa

Value31,520.07   
Change-172.730    
% Change-0.545

read more


Nigeria All share Bloomberg Visual +23.374% 2010
Africa

Value25,367.83   
Change-523.300    
% Change-2.021

read more


Namibia to allow foreign banks to open branches Reuters
World Of Finance

Namibia will allow foreign banks to open branches and also make it
easier for the government to increase local ownership of domestic
banks, the southern African nation's central bank said.The Bank of
Namibia said in a statement on Friday a new amendment would allow
"credible foreign banking institutions" to open branches to promote
competition in a banking industry dominated by a handful of lenders.

Namibia in July blocked a bid by South Africa's Absa to gain control
of a local lender, citing concern about foreign dominance of its
financial industry.Only Bank Windhoek, of which Absa had a bid to take
a controlling stake, is majority owned by locals.South Africa's
Standard Bank, FirstRand and Nedbank, all have majority stakes in
Namibian lenders.

read more


Youssef Nabil’s Cinema New Yorker Photo Booth
Misc.

Youssef Nabil is enamored of the cinema. Growing up in Egypt, he
longed for the time before the revolution, an era of elegance and
decadence that he had absorbed from Arab movies of the forties and
fifties. Nabil shoots his elaborately arranged portraits in
black-and-white, and then meticulously hand-colors his prints, each
one an original artwork. His palette is rich and varied, reflecting
the vibrant films of his youth.Nabil’s earlier work, created shortly
after his departure from Egypt, evokes a nostalgia for the cinematic
past. He strikes more somber notes in his recent self-portraits:
loneliness, longing, death. It comes as no surprise that he also
shoots portraits of the movie stars he so much admires. Both sitter
and viewer were enthusiastic about his image of Catherine Deneuve,
which can be seen in his exhibition at Yossi Milo Gallery.

Rania Cairo 2002.

Catherine Deneuve, Paris, 2010.

read more


Why Senator Lugar is worried about bioterrorism in East Africa CS Monitor
Africa

Nairobi, Kenya

On one side of the 7-foot brick wall, topped with rusting barbed wire
and a four-strand electric fence, lies Africa’s largest slum – a
barely policed square mile of tin-roofed shacks that is home to
700,000 people. On the other is Kenya’s premier medical research
laboratory, where samples of diseases considered among the biggest
threats to humanity – including plague, anthrax, and Ebola – are
studied and stored.But not stored safely enough, according to a team
of senior Pentagon and congressional officials who visited the
facility Friday during an East Africa tour focused on the increasing
threat of bioterrorism.

Defense analysts are concerned that security in the region’s
laboratories is too weak to withstand the threat from regional terror
groups, including Al Qaeda, which are hunting for ingredients for
biological weapons.

It’s a “potentially disastrous predicament,” said Sen. Richard Lugar
(R) of Indiana, the ranking minority leader of the Senate Foreign
Relations Committee, who led the delegation.

East Africa was high on the list for the post-Soviet focus of the
Nunn-Lugar Program “because of the nexus between active terrorist
groups, ungoverned spaces, and human and animal health laboratories
working on endemic diseases, some of which are rare and exotic," said
Andy Weber, assistant to Defense Secretary Robert Gates for nuclear,
chemical, and biological defense programs, who was part of the US
delegation that visited Uganda and Burundi en route to Kenya.

“We want to make sure that the pathogens that could be used by used
terrorists are better secured and that there’s an enhanced capability
to monitor infectious disease outbreaks,” added Mr. Weber.

Stolen pathogens, he suggested, could be used by attackers who would
circulate in populated areas and try to spread the disease.He said
that during his tour Friday of the Kenya Medical Research Institute in
Nairobi, there were “a couple of frightening moments, if you use your
imagination."Waste from experiments was poorly stored before being
incinerated. Cooler boxes of disease samples (although not the most
deadly) were stockpiled in corridors. And then there was the
cheek-by-jowl proximity of homes just beyond Kemri’s basic perimeter.

“People are literally living up against the wall,” said Lugar, adding
that such sensitive facilities are usually far from towns and cities.

“I won’t try to describe all the scenarios which could follow if a
malicious human being seized a container of whatever is stored here,
but it would not take enormous imagination," he said. “Al Shabab, or
Al Qaeda, clearly has a few persons who are specialized in this malice
but still lack the raw material to carry out this mission.”
Facilities, security are spread thin

Solomon Mpoke, Kemri’s director, conceded that security at his
laboratories was “average” and that at times incineration and storage
facilities are “overwhelmed."

“To date we’ve not had any threat,” he said. “But what we’re hearing
all over the place here, bombs being released here, who knows, the
next thing could be a biological threat. We should be worried about
that.

“[The Kampala bombings] certainly caused us to place a higher priority
in this part of the world than, for example Latin America,” said
Weber, the defense secretary's assistant.

read more


The new black elite: Eating sushi while sitting on a ticking bomb The Guardian
Africa

A wealthy woman riding her Harley Davidson in front of ANC supporters
in Johannesburg: While a small proportion of South Africa's black
population has become richer in recent years, the majority have
remained impoverished. Photograph: Kim Ludbrook/EPA

All this came to mind in the days that followed the rapid rise to
infamy of Kenny Kunene, a hitherto little-known businessman and member
of the so-called "new black elite". To celebrate his 40th birthday,
Kunene threw a party costing more than 700,000 rand, or £63,000, at an
exclusive nightclub in Sandton, the wealthiest suburb of Johannesburg.
According to the City Press newspaper, "the party was the definition
of bling and debauchery" and served 66 bottles of Dom Perignon, 36
bottles of Cristal and 32 bottles of 18-year-old Chivas Regal. The 300
invited guests, instructed to wear all-white ensembles, included Zizi
Kodwa, spokesman for President Zuma, and Malema, president of the
African National Congress (ANC) youth league.

Kunene, arriving late by limousine, could be seen posing in shades,
bow tie and flamboyant white suit, his arms draped around four models
smothered in grey paint. But what everyone will remember is the sushi,
or rather the manner of its serving. For Kunene's delectation, the
rice and raw fish was spread out on the thighs and stomach of a young
model wearing only shoes and black lingerie.

Kunene has quickly been dubbed a "sushi king", and this once innocent
Japanese delicacy has suddenly become a byword for Gatsby-esque
excess. "It is this spitting in the face of the poor and insulting
their integrity that makes me sick," said Zwelinzima Vavi, general
secretary of the Congress of South African Trade Unions, who is
rapidly establishing himself as the voice of the ANC's disappointed
friends.

"I am told at one party sushi was served from the bodies of half-naked
ladies. It is the sight of these parties, where the elite display
their wealth, often secured by questionable methods, that turns my
stomach."

But Kunene evidently isn't a man to take such criticism lying down. He
wrote Vavi an open letter that retorted: "I should not have to defend
what I spend my money on – a huge milestone in my life – when it's
honest money spent on honest fun. You remind me of what it felt like
to live under apartheid: you are telling me, a black man, what I can
and cannot do with my life.

"White people threw big parties every day when I was a poor young
black man. They are still throwing parties. There is nothing wrong
with that. Many of them are my friends. I look up to many of them. We
celebrate success, not doing what many now do, hiding their money in
fear of what people like you will say. I want my life to inspire
people to go into business, so they can create jobs for others."

He added: "You are narrow-minded and still think that it's a sin for
black people to drive sports cars or be millionaires at a young age.

"You make my stomach turn."

There has been widespread condemnation of Kunene for flaunting
ostentatious wealth in the world's most unequal society. Figures
published this week show that about 1.6% of the South African
population earns a quarter of all personal income. Only 41% have a job
and just 58% have attended secondary school; 9% don't have access to
water, 23% don't have toilets and 24% don't have electricity. Average
life expectancy is 52, the lowest since 1970.

Small wonder that last week, at an event organised by the news and
comment website the Daily Maverick, I heard Vavi warn: "We are already
sitting on a ticking bomb. The poor are already getting restless. They
are tired of watching and reading about the elite blacks or whites
parading wealth a few kilometres away from where they live in squalor.

"The more we delay intervening, strongly guided by a new growth path
that will end poverty, worsening unemployment and inequalities, the
more we risk that one day this poor majority will simply walk to the
suburbs to demand the same living standards. No walls will be high
enough and no electronic fences will be strong enough to stop the
overwhelming majority."

Just as Nero is doomed to be remembered for fiddling while Rome
burned, which he didn't, and Marie Antoinette for saying "Let them eat
cake", which she didn't, so Kunene looks set to go down in shame for
consuming sushi, which he did. But what of the model who acted as his
sushi board? "I felt safe the entire time," Naledi told the press.

"Nobody came on to me or touched me. And Kenny literally only had one
bite to eat."

read more


Nairobi All Share Bloomberg Visual +44.738% 2010
N.S.E General

Value84.18   
Change0.010    
% Change0.012

read more


We are optimistic about Southern Sudan- KCB East African
N.S.E Equities - Finance & Investment

Despite regional expansion and uncertainty over the Southern Sudan
referendum, the KCB Group is optimistic that business can only get
better.Chief executive officer Martin Odour-Otieno explained that
going by the bank’s huge profits up to the third quarter of this year
which has already surpassed 2009, things are looking up for the
economy.

The top four banks in Kenya have reported huge profits of more than
Ksh6 billion ($75 million) for the period up to September, with KCB
making Ksh6.5 billion ($81.25 million).

Mr Otieno said that although businesses are cautious about the
Southern Sudan referendum slated for January 2011, the bank has chosen
the optimistic path given that it is the most visible financial
institution in that region where it has presence in every town.

“We are everywhere in Southern Sudan,” he said, adding that some of
their branches are located in the towns where fear is rife that they
could flare up during the referendum.

Conclusions

Martin O-O's Video Presentation at Mindspeak here
http://www.rich.co.ke/rctools/richtv.php

The Actual Presentation that was shown on the Film Screen is here
http://bit.ly/b8oKik

Kenya Commercial Bank 3rd Quarter and share price data www.rich.co.ke
http://bit.ly/bshUrU

Par Value:                  1/-
Closing Price:          22.00
Total Shares Issued:          2,950,259,712
Market Capitalization:        64,906M
EPS:            1.84
PE:                11.957

Conclusions

Sub 9.00 Forward PE.

read more


KenGen's Rights Issue could be put on ice as Cabinet 'rethink' privatisation East African
N.S.E Equities - Industrial & Allied

Uncertainty surrounds the planned sale of 19 per cent shares of
state-controlled power utility KenGen to a foreign strategic partner
as news begins to filter that the Cabinet  had ordered  a “rethink” of
the rationale behind  the whole idea of selling any more shares in
strategic infrastructure parastatals to private interests.In a
conversation with The EastAfrican, Energy minister Kiraitu Murungi
confirmed that the Cabinet had ordered a re-examination of the
objectives of privatisation to determine whether sharing ownership of
large infrastructure parastatals with foreign investors seeking quick
returns was in the long-term interest of the country.

“We have looked at privatisations in the infrastructure sector and are
convinced that most strategic investors are risk-averse types who
don’t take a long-term view in terms of capital expenditure,” he said.

Mr Kiraitu argued that the government was yet to realise any tangible
value from selling 30 per cent of shares  in KenGen three years ago.

The full  implications of the dramatic policy shift within the Cabinet
is still not clear. But  it is sure to create major ramifications on
the plans to bring in a foreign strategic investor into KenGen.

Indeed, KenGen’s privatisation plans are at an advanced stage. The
transaction advisor  appointed in August last year to conduct due
diligence and advise on both the timing and method of privatisation
has already produced an inception report.Chances are that KenGen may
well turn out to be another playground for an emerging trend of turf
wars between the Treasury and the Ministry of Energy over the
country’s energy investment programme.

Conclusions

“I have not  not heard anything about the Cabinet decision’, said
KenGen’s managing director Edward Njoroge.

KenGen share price data www.rich.co.ke
http://bit.ly/1ADZcx

Par Value:                  2.50/-
Closing Price:          17.10
Total Shares Issued:          2,198,361,344
Market Capitalization:        37,592M
EPS:            0.89
PE:                19.213

read more


“We have mobile data, the other guys don’t have mobile data,” Collymore Bloomberg
N.S.E Equities - Commercial & Services

Safaricom Ltd., Kenya’s biggest mobile-phone company, plans to
capitalize on its lead in 3G infrastructure by selling laptops and
offering services to new and existing customers.

The company is the only operator of a third-generation
telecommunications network in Kenya. In the first half of its fiscal
year, Safaricom became the biggest importer of laptops into the
country as it seeks to boost Internet access in the East African
country, Chief Executive Officer Bob Collymore said in an interview
yesterday in Nairobi.

“We have mobile data, the other guys don’t have mobile data,”
Collymore said. “So what we have to do is take advantage of that lead.
We think we have about an 18-month lead before they catch up to the
point where we are.”

Mobile operators including Safaricom, Bharti Airtel Ltd.’s Kenyan unit
and Telkom Kenya Ltd. are becoming more reliant on data for revenue
after the industry regulator in August halved the rates that operators
charge each other to connect calls across networks to 2.21 shillings.
That triggered a round of cuts in call costs by companies to less than
2 shillings per minute and in some cases free calls during off-peak
hours.

Operators are betting that increased data traffic will make up for the
lower voice revenue and are offering customers laptops, net books or
smart phones to attract new clients.

By 2015, there will be 265 million mobile broadband subscriptions in
Africa, up from about 12 million at the end of September, according to
Informa Telecoms & Media, a London-based research group.

Safaricom imported 40,000 laptops in the six months through September,
Collymore said. The company, which yesterday reported a 15 percent
increase in first-half profit, also bought 400,000 data-enabled
handsets, or smartphones, and sold 45,000 data modems, he
said.Customers using Safaricom’s data services surged 92 percent to
3.61 million people in the six months through September from a year
earlier, it said yesterday. About 839 base stations, or 37 percent of
the total, are enabled to transmit 3G signals, which enable faster
Internet browsing and downloading. Safaricom intends to increase that
ratio to 50 percent within two years, Collymore said.

In the fiscal year through March 2011, Safaricom plans to spend 23
billion shillings on capital expenditure, Chief Financial Officer
Chris Tiffin said during the interview.

“Probably expect about the same level next year,” he said. “About 20
percent of that will be on the 3G network.”

Safaricom will also seek more licenses to provide additional services
to its more than 16.7 million customers, Collymore said.

“We will continue looking in the market for more opportunities,” he
said. Testing of a 4G network, which will give subscribers faster
access to higher-quality Internet content on their mobile phones,
began in August. “It will take some time, maybe 18 months before
really usable devices become available.”

Safaricom share price data www.rich.co.ke
http://bit.ly/4cdZRM

Par Value:                  0.05/-
Closing Price:          4.75
Total Shares Issued:          40,000,000,000
Market Capitalization:        190,000M
EPS:            0.38
PE:                12.500

read more



Live Dollar versus Kenya Shilling Forexpros 80.50 Last
World Currencies

The IMF Package of just less than $500m supports.

read more



 
 
N.S.E Today

The Nairobi All share closed down 0.27 points at 101.51 and remains up
44% for the Year To Date and the 2nd best performing SSA Stock Index
after Uganda.
The NSE20 closed down 21.01 points at 4574.28 some 2.784% off its 2010
Closing High level.
Market Capitalisation was 1.210977 Trillion versus 1.214211 Trillion last time.
Equity Turnover was 352.007m versus 364.576m with EABL the Stand Out
and closing at a Fresh All Time High of 219.00.



N.S.E Equities - Agricultural

Sasini Tea traded 9,700 shares and closed at 13.85.
Rea Vipingo traded 30,000 shares and closed at 17.30.
Kakuzi traded 2,100 shares and closed at 83.50.



N.S.E Equities - Commercial & Services

SAFARICOM

shares volume     6,740,700
total turnover     31,842,400
avg price     4.72 closing PRICE 4.70 -1.055%
high price     4.80
low price     4.60
last price     4.65

Conclusions

Safaricom traded 5th overall and shaved off 1.055%. The Trailing PE is
just under 12.5 and I thought the 1st Half results muscular both from
a Defensive Perspective [They lost less than 2% Market Share] and They
played strong Offence on the Data side. The Supply is currently Retail
and thinning out. I expect the Price to turn higher now.

Kenya Airways traded 3rd at the Bourse. Kenya Airways eased 0.59% to
close at 42.00 and traded a 41.50-42.50 range and 893,700 shares worth
37.54m. Kenya Airways traded out the session at 41.50 -1.78%. Kenya
Airways made 3.11 1st 6 months and straight lining that gives us
42.00/ 6.22 = Implied Forward PE 6.75. That justifies a close Look.

Kenya Airways share price data from www.rich.co.ke
http://bit.ly/ax6Ydy

Par Value:                  5/-
Closing Price:          42.25
Total Shares Issued:          461,615,488
Market Capitalization:        19,503M
EPS:            4.40
PE:                9.602

TPS Serena bounced 1.48% to close at 68.50 and traded 36,000 shares.

Access Kenya was well traded with 484,500 shares traded and Access
Kenya closed at 16.95. Access Kenya is down 18.848% on a 1 Year Basis
and 16.00 is its 52 week low.

CMC Holdings shaved off 5 cents to close at 13.00 and traded 106,500 shares.
CarGen did not trade.

ScanGroup eased 1.4.08% to close at 70.00 and traded 19,400 shares.

Nation Media eased a shilling to close at 167.00 and traded 15,200 shares.
Standard firmed 25 cents to close at 45.75 and traded 2,400 shares.



N.S.E Equities - Finance & Investment

CFC StanBic traded 2nd at the Nairobi Bourse. CFC StanBic was
unchanged at 87.50 and traded an 85.00-88.00 range and 449,900 shares
worth 39.367m. CFC StanBic has registered a 73.469% 1 Year Return.

StanChart rallied 1.48% to close at 274.00 and traded a 270.00-275.00
range and 41,100 shares worth 11.291m.
Equity Bank was unchanged at 26.75 and traded a 26.75-27.00 range and
710,300 shares worth 19.019m. Equity Bank sits just below 27.00 its
recent and 27 Month Closing High.
KCB eased 1.14% to close at 21.75 and traded a 21.50-22.25 range and
384,300 shares worth 8.445m. The Forward PE is about 8.00 which is
very inexpensive versus its Peers and especially Post the Rights Issue
which has previously always spiked Earnings and will again.
COOP Bank dipped 0.25% to close at 19.95 and traded a 19.95-20.25
range and 571,800 shares.
Barclays Bank retreated 0.78% to close at 64.00 and traded a
63.50-65.00 range and 122,100 shares worth 7.869m. Barclays has come
off its 25 Month and 2010 Closing High of 70.00.

DTB firmed a shilling to close at 131.00 and was trading at 133.00
+2.31% session highs at the Close. DTB reported Muscular 3rd Quarter
Results and traded 115,400 shares worth 15.204m.
HFCK eased 0.92% to close at 27.00 and traded 30,300 shares.
NBK retreated 1.23% to close at 40.00 and traded 77,700 shares.
NIC came off 1.54% to close at 48.00 and traded 37,000 shares.

Centum was unchanged at 23.50 and traded 38,300 shares.

Kenya Re fell back 3.004% to close at 11.30 and traded 64,700 shares.
Jubilee eased 0.5% to close at 200.00 and traded 6,000 shares.
PanAfric traded 4,600 shares at 70.00 unchanged.

Olympia Capital traded 1,100 shares and closed at 7.05.



N.S.E Equities - Industrial & Allied

EABL was the most active share at the Nairobi Bourse. EABL firmed
0.92% to close at 219.00 a New All Time Closing High. EABL traded a
217.00-222.00 range and 222.00 is a new All Time High Intra Day trade
Print. EABL traded 342,400 shares worth 75.31m. EABL continues to be
sought by Foreign Investors whom I believe are applauding the
Expansion in Tanzania and excited by the EABL 'Pure Play' East Africa
Exposure.

EABL share price data www.rich.co.ke +63.401% 1 Year
http://bit.ly/57wrgL

Par Value:                  2/-
Closing Price:          217.00
Total Shares Issued:          790,774,336
Market Capitalization:        171,598M
EPS:            9.09
PE:                23.872

Sameer Africa fell 3.77% to close at 7.65 and traded 165,200 shares.
Sameer Africa issued a Profits Warning Friday after the Market closed
and The Warning can be found here.

Sameer Africa Ltd. (Firestone) Scroll Down
http://bit.ly/dCsksT
http://www.sameer-group.com/
Par Value:                  5/-
Closing Price:          7.95
Total Shares Issued:          278,342,400
Market Capitalization:        2,213M
EPS:            0.57
PE:                13.947

Mumias Sugar traded 6th at the Bourse. Mumias Sugar fell 1.01% to
close at 9.80 and traded 2.378m shares worth 23.372m. Mumias Sugar
peaked at 15.50 on 5th August this Year and has slumped 36.774% from
that Level through November.

The East African carried a report that the Minister of Energy was
seeking a Cabinet Level Discussion about Kengen and its Proposed
Secondary Tranche of Shares. KenGen eased 2.33% to close at 16.70 and
traded 417,900 shares.
Kenya Power retreated 0.47% to close at 211.00 and traded 10,900
shares. Investors await Rights Issue Pricing Details which Piece is
the only Missing One referencing the Balance Sheet Restructuring.
Cables was unchanged at 18.15 and traded 15,200 shares.

KenolKobil closed 0.465% easier at 10.70 and traded 2.165m shares.
Total traded 9,000 shares and was unchanged at 30.00.

Bamburi Cement traded 19,000 shares at 202.00 unchanged.
Athi River Mining was unchanged at 175.00 and traded 9,900 shares.
Portland was unchanged at 114.00 with only a 100 shares trading.

Crown Berger bounced 5.673% to close at 37.25 and traded 9,500 shares.

BAT traded unchanged at 290.00 on light volume of 300 shares.

Carbacid traded 28,600 shares and closed 1.33% easier at 148.00.
BOC Kenya did not trade.

Eveready closed 5 cents better at 3.45 and traded  13,200 shares.
Unga traded 9,500 shares and was unchanged at 11.80.



by Aly Khan Satchu (www.rich.co.ke)
 
 
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November 2010
 
 
 
 
 
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  aly khan says:
november 16th, 2010 at 12:27 pm
Bharti Airtel Live Quote Edelweiss
http://bit.ly/dofhFF www.rich.co.ke