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Satchu's Rich Wrap-Up
 
 
Friday 15th of February 2013
 
Morning
Africa

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0930-1500 KENYA TIME
Normal Board - The Whole shebang
Prompt Board Next day settlement
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The Latest Daily PodCast can be found here on the Front Page of the site
http://www.rich.co.ke

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@JohnGithongo in the House #Mindspeak Saturday 16th February @InterConNairobi
Africa

John Githongo is the CEO of Inuka, a non-governmental organisation
involved in governance issues broadly defined, with an emphasis on
working with and for ordinary Kenyans – youth in particular. In doing
this Inuka is guided by the principles of heshima (respect), diversity
(celebrating the depth and wealth of Kenya’s cultural diversity) and
Ni Sisi! (It is us!) – for it is Kenyans who own and will ultimately
resolve even the most seemingly intractable of their problems. John is
also the Chairman of the Africa Institute for Governing with
Integrity; Executive Vice Chair of the Mathare Youth Sports
Association (MYSA); board member of the Africa Center for Open
Governance (AFRICOG); and a Commissioner of the Independent Commission
on Aid Impact (ICAI) of the British government. Previously, he served
as Vice President of World Vision, Senior Associate Member, St
Antony’s College Oxford; Permanent Secretary in the Office of the
President in charge of Governance and Ethics of the Kenya Government;
board member Transparency International, Berlin, CEO Transparency
International Kenya and a board member of the Kenya Human Rights
Commission. In the past he has been a columnist for the EastAfrican,
Associate Editor, Executive magazine; and a correspondent for the
Economist. In 2004 the German President awarded him the German-Afrika
Prize for Leadership. In 2011 he was selected as one of the world’s
100 most influential Africans by New African magazine and one of the
world’s top 100 global thinkers by Foreign Policy magazine. In 2012 he
was short-listed, alongside US Secretary of State, Hillary Clinton for
the prestigious Tipperary International Peace Award. John is also a
Senior Advisor to the Office of the President of South Sudan on
governance.  He holds an honours degree in Economics and Philosophy
from the University of Wales and an Honorary Doctorate from the Open
University.

read more





With Thanks to Devlin Hainsworth EABL M.D and CEO for the Interview @Diageo_News
Africa


Macro Thoughts

Home Thoughts

Yesterday I met with my very First Boss Al-Noor Ramji Esquire.

It was a Pleasure. Al-Noor is a wonderful Man and could not have
proven a Better Mentor for Someone starting out on his Life.

read more


Al-Noor Ramji Businessweek Profile
Africa


Mr. Al-Noor Ramji has been an Executive Vice President and General
Manager at Misys International Banking Systems Limited since April 1,
2010.  Mr. Ramji served as the Chief Executive Officer of BTexact
Technologies. He serves as the Chief Executive Officer of BT Global
Services Ltd. Mr. Raniji served as the Chief Information Officer of BT
Group PLC from May 2004 to 2010. He served as the Chief Executive
Officer of BT Innovate and Design at BT Group PLC from 2004 to 2010.
Mr. Ramiji served as the Chief Financial Officer and Executive Vice
President of Qwest Communications International Inc. (Qwest) from 2001
to May 2004. M. Prior to BT, he served as the Chief E-Commerce Officer
of Qwest Communications. Prior to joining Qwest in 2001, Mr. Raniji
served as a Global Chief Information Officer at Dresdner Kleinwort
Benson from 1996 to 2001, following a number of senior IT and business
positions with Swiss Bank Corporation and Credit Suisse First Boston.
He founded WebTek Software and served as its Group Chief Executive
Officer from 1998 to 2001. Mr. Raniji also served as Chief Information
Officer at UBS and as Global Head of Operations at Credit Suisse First
Boston. . His track record of successfully leveraging information
technologies to achieve business objectives has won him numerous top
industry awards, including: CIO magazine's CIO 100 Award, CNET UK CIO
of the Year and the British Computer Society CIO of the Year. He was
one of the best known figures in information technology in the City of
London. He is a Chartered Financial Analyst and holds a B.Sc in
Electronics from University of London.

read more


Court dismisses Uhuru, Ruto case Nation
Law & Politics


A case challenging the eligibility of Deputy Prime Minister Uhuru
Kenyatta and former Eldoret North MP William Ruto to contest the March
4 General Election has been dismissed.

The High Court on Friday said the Supreme Court has "exclusive and
original jurisdiction" to hear election related disputes.

The five-judge bench ruled it has no jurisdiction to hear matters on
qualification or disqualification of presidential candidates.

The court ruled that the Independent Electoral and Boundaries
Commission (IEBC) and the Ethics and Anti-Corruption Commission (EACC)
have the necessary powers to inquire into the integrity of persons
seeking elective office.

However, the judges said there was no evidence that the bodies made
enquiries on the integrity of the respondents.

Further, the court ruled that it would be prejudicial to the rights of
Mr Kenyatta's The National Alliance (TNA) and voters to bar him from
contesting the presidency.

"We cannot exercise the rights of citizens to choose leaders of their
choice," the judges said.

The court said that while Mr Kenyatta and Mr Ruto were facing crimes
against humanity charges at the International Criminal Court (ICC),
they had not been convicted of any crimes.

"The presumption of innocence serves not only to protect the rights of
the accused but to maintain public confidence in courts," the court
said.

Conclusions

Predictable and Predicted.

Washington DC, US: Barack Obama is greeted before his State of the
Union address prior to a joint session of Congress on Capitol Hill
http://www.guardian.co.uk/news/gallery/2013/feb/13/photography#/?picture=403996053&index=11

Can Pentagon Keep Up ‘Asian Pivot’ While Scrambling Into Northern Africa?
http://news.antiwar.com/2013/02/14/can-pentagon-keep-up-asian-pivot-while-scrambling-into-northern-africa/

For the past couple of years, the Pentagon has made much of its “Asian
Pivot,” planning increased deployments in and around the Pacific Rim
with an eye toward expanding US power in the region and “containing”
China.

Conclusions

The Pivot to Asia detours through Africa.

The Snake @Aiww @Hirshhorn Twitpic
http://www.twitpic.com/bdl6zk

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Berkshire Joins 3G Capital to Buy Heinz in $23 Billion Deal Bloomberg
International Trade


Warren Buffett’s Berkshire Hathaway Inc. and Jorge Paulo Lemann’s 3G
Capital agreed to buy HJ Heinz Co. in a deal for about $23 billion as
the billionaires increased their bets on consumer products.

The buyers will pay $72.50 a share, compared with yesterday’s closing
price of $60.48, according to a statement today. Berkshire will spend
about $12 billion to $13 billion on the deal for the maker of
condiments and Ore-Ida potato snacks, Buffett told CNBC. The deal will
also be financed with cash from 3G affiliates, plus the rollover of
existing debt, and is valued at about $28 billion including debt,
according to the statement.

Heinz benefits from “very powerful consumer goodwill in the developed
markets and a very early start in China and India, two of the largest
developing markets,” Tom Russo, a partner at Berkshire investor
Gardner Russo & Gardner said in a phone interview. “It will not be
hard to service the debt.”

Buffett, 82, has been seeking deals after the cash pile at Omaha,
Nebraska-based Berkshire climbed to more than $45 billion. He has
previously wagered on consumer products through equity investments in
Coca-Cola Co. and he helped finance Mars Inc.’s purchase of chewing
gum maker Wm. Wrigley Jr. Co. Brazil’s Lemann, 73, is worth about $19
billion based on holdings in Anheuser-Busch InBev NV and Burger King
Worldwide Inc., according to the Bloomberg

The condiment maker, led by Chief Executive Officer Bill Johnson since
1998, had gained 17 percent in the past 12 months as it boosted sales
in developing economies. Heinz in November said fiscal second-quarter
sales in emerging markets rose 13 percent, excluding the effects of
foreign currency fluctuations and acquisitions or divestitures.

3G will oversee the operations of the business, Buffett told CNBC,
praising the investment company’s record with Burger King, which it
acquired in 2010 and then took public last year. He said he expects
Johnson to remain in charge and that 3G will have the final say.

Heinz will retain its corporate headquarters in Pittsburgh, according
to the statement. The company traces its roots back to 1869, when
Henry John Heinz and neighbor L. Clarence Noble began selling grated
horseradish, according to Heinz’s website. The company introduced its
famous Tomato Ketchup in 1876.

The deal is the largest ever in the food industry, the companies said.
The buyers are paying about 14.6 times earnings before interest,
taxes, depreciation and amortization, according to data compiled by
Bloomberg.

“Buffett’s affection for strong brand names” make the company a good
fit for his portfolio, said Christopher Growe, an analyst at Stifel
Nicolaus & Co. “Heinz’s strong margins support robust free-cash flow
generation.”

The historic neon Heinz factory sign in Pittsburgh, Pennsylvania, in
this file photo.

Conclusions

I think its a clever and well priced Purchase.

Currency Markets at a Glance WSJ
http://j.mp/97tI8l

Euro 1.3333 djfxtrader: *Draghi: Eurozone Data More Negative Than Expected
Dollar Index 80.44
Japan Yen 92.33 The yen strengthened for a fourth day against the dollar
Swiss Franc 0.9222
Pound 1.5475 trades very poorly
Aussie 1.0355
India Rupee 54.04
South Korea Won 1079
Brazil Real 1.9586
Egypt Pound 6.7264
South Africa Rand 8.8069

Group of 20 finance ministers and central bankers begin talks in
Moscow today with investors seeking clarity on how comfortable they
are with a sliding yen. Questions are being asked after the Group of
Seven united around a pledge not to target exchange rates only to
divide over its meaning for Japan. At stake is how much to endorse
Japan’s use of fresh monetary stimulus to propel its economy from 15
years of deflation without signaling support for a weaker yen, which
may hurt exporters elsewhere and prompt retaliation. The yen
strengthened for a fourth day today against the dollar.

 International Monetary Fund sought to ease concerns about
exchange-rate volatility yesterday, calling talk of currency wars
“overblown.”

Conclusions

I do not expect a meaningful Communique from The Week End and
therefore, The Yen Short covering Rally will peter out.
The Euro is a Buy again. The Weak GDP Data was weaker than estimates, however.
The Pound heads lower.
The Egypt Pound is headed over 7.00.

Dollar Yen 3 Month Chart INO 92.30 Last
http://quotes.ino.com/charting/index.html?s=FOREX_USDJPY&v=d3&t=c&a=50&w=1

Japan’s ruling party lawmaker Kozo Yamamoto said that a race to
devalue currencies would spur global growth and a rate of 95 yen to
100 yen per dollar would be appropriate.

Euro versus the Dollar 3 Month Chart 1.3333
http://quotes.ino.com/charting/index.html?s=FOREX_EURUSD&v=d3&t=c&a=50&w=1

djfxtrader: ECB's Weidmann: Euro Not Seriously Overvalued; #ECB Will
Abstain From Manipulating or Directly Targeting #Euro Exchange Rate -
Report

Sterling 3 Month Chart INO 1.5476 Last
http://quotes.ino.com/charting/index.html?s=FOREX_GBPUSD&v=d3&t=c&a=50&w=1

Dollar Index 3 Month Chart INO 80.428 Last
http://quotes.ino.com/charting/index.html?s=NYBOT_DX&v=d3&t=c&a=50&w=1

read more


Commodity Markets at a Glance WSJ
Commodities


Crude Oil 5 Day Chart INO 97.47 Last
http://quotes.ino.com/charting/index.html?s=NYMEX_CL.J13.E&v=w&t=c&a=2&w=15

Gold 3 Month Chart INO 1630.71 Last
http://quotes.ino.com/charting/index.html?s=FOREX_XAUUSDO&v=d3&t=c&a=50&w=1

Global ETP holdings have lost 0.9 percent since reaching a record on Dec. 20.

Conclusions

Has softened quite a bit of late.

Emerging Markets

Frontier Markets

read more


Mozambique Targets Gas Companies for Stock Exchange Listings Bloomberg
Africa


Mozambique’s stock exchange may add five new listings by 2018, the
first as early as June, as companies exploring for gas raise funding
for projects, said Anabela Chambuca Pinho, chief executive officer of
the bourse.

“Foreign companies operating or those wishing to extract gas and oil
in our country that are listed on other exchanges have to be listed on
our exchange in Mozambique,” she said in an interview in Victoria
Falls, Zimbabwe yesterday. “These companies will need to raise capital
in our markets.”

The southern African nation, site of the world’s largest discovery of
natural gas in the past decade, has attracted companies including
Anadarko Petroleum Corp. and Eni SpA as it pushes for investments of
as much as $30 billion into the industry by 2018. The economy of more
than 23 million people expanded 6.8 percent in the third quarter. Vale
SA, the world’s biggest iron-ore producer, is building a railway line
to transport coal from a mine in Mozambique to the coast.

The Maputo, Mozambique-based bourse, known as the Bolsa de Valores de
Mocambique, has a market capitalization of more than 30 billion
meticais ($977 million) with three listed companies as well as
government and corporate debt, according to its website. Stocks
include SABMiller Plc’s Cervejas de Mocambique SA, a brewer, and Cia
Mocambicana de Hidrocarbonetos SA, a state-owned oil and gas company.

“By end of June, we expect one more company to be listed,” Chambuca
Pinho said, declining to identify the business because of
confidentiality agreements. “We are small in terms of numbers
currently listed but we are growing.”

A company has to pay 28 million meticais to list its stock. The bourse
recorded 250 trades in 2012, 191 of which were in the equity market
and 21 on the bond market, Chambuca Pinho said. It trades from 9 a.m.
to 12 p.m. on Tuesdays, Thursdays and Fridays, according to its
website.

The metical weakened 0.5 percent to 30.7000 per dollar as of 9:24 a.m.
in the capital, Maputo. The currency has dropped 3.3 percent against
the dollar this year.

Conclusions

I am not sure whether There is a Deep enough Domestic Pool of Capital to tap.

The Government might consider selling their Holdings at a steep
Discount in order to be the Catalyst for the Development of the Stock
Market.

04-JUN-2012 ::  Maputo, Boom Town
http://www.rich.co.ke/media/docs/040NSX0406.pdf

GREETINGS from the Serena Polana, Maputo. I can confirm that Maputo is
the land of wonderful and flavoursome tiger prawns.

The Architecture is also deliciously retro. By the way, the Polana was
built in 1922 and the flavour is fabulously Riviera and very swanky.
It is less than 4 hours by plane from Nairobi and surely set to be the
most of in things and places to visit.

Of course, Mozambique has popped large onto the global radar because
of gas reserves that have been discovered offshore and in the deep
sea.

I have said before, that I believe the eastern seaboard of Africa is
clearly the last great energy prize in the c21st and I believe this
lake of hydrocarbons stretches from Mozambique up through Tanzania,
Kenya and Somalia. We remain in the early stage of this discovery
process but Mozambique is further along the curve.

The Ministry of Finance #Mozambique #Africa Twitpic
http://www.twitpic.com/9t54mh

The Central Bank of Mozambique #Maputo #Africa Twitpic
http://www.twitpic.com/9snugh

Maputo from the Sea #Africa Twitpic
http://www.twitpic.com/9sab9t

Dollar versus Rand 5 Day Chart INO 8.7991 Last
http://quotes.ino.com/charting/?s=FOREX_USDZAR

Egypt Pound versus The Dollar 3 Month Chart INO 6.7280 Last
http://quotes.ino.com/charting/index.html?s=FOREX_USDEGP&v=d3&t=c&a=50&w=1

read more


Kenyatta's bid for Kenya presidency a diplomatic headache Reuters
Kenyan Economy


East Africa's most powerful economy and a key regional ally in the
U.S.-led war against militant Islam could next month elect a president
accused of crimes against humanity, posing a diplomatic headache for
Western capitals.

If Uhuru Kenyatta wins the March 4 poll, Kenya will become the second
country after Sudan to have a sitting president facing trial at the
International Criminal Court in The Hague.

If a newly-elected Kenyatta were to refuse to appear before the ICC,
"you don't need a PhD in international relations to know the options
open to us," a Western diplomat said, predicting serious consequences.

A second diplomat cited Sudan as "a perfect example of
non-compliance". "(Sudan) gives you an idea of what the maximum
response is," the diplomat said.

After scoffing at the ICC, Sudan's Bashir has been targeted by an
international arrest warrant. Although the charges against him did not
lead directly to economic sanctions against Sudan, the EU's Cotonou
agreement governing trade requires compliance with the ICC. Opting out
cost Khartoum at least 336 million euros ($452 million) worth of
development funds.

Kenya, too, is a signatory of the Cotonou agreement.

Nevertheless, Western countries would be reluctant to punish the
Kenyan population. Aid suspensions appear off the agenda.

"We are unlikely to use aid as a political tool," another
Nairobi-based diplomat said.

They say if Kenya's Western allies isolate Kenya they will push the
Nairobi government deeper into the arms of another increasingly
important trade partner - China.

"It's just common sense. The Chinese aren't attempting to try him in
Beijing," a source close to the Kenyatta camp told Reuters. Reuters
made several requests to speak to China's embassy in Kenya but was
unsuccessful.

Any sign of unease in the market would reflect first in the local currency.

"If in doubt people run to safety. And safety is not in Kenyan
shillings," David Cowan, Africa economist at Citi said.

"And in Kenya's case, if you're running a big current account, a big
fiscal deficit that needs financing, then that becomes very
problematic for you."

A run on the currency would threaten Kenya's below-target hard
currency reserves, which the central bank has already begun reducing
in the run-up to the poll to support the under-pressure shilling.

Increased uncertainty under Kenyatta's helm could also hamper Kenya's
plan to launch a eurobond worth between $750 million and $1 billion in
the 2013/14 fiscal year.

"It's not that it's impossible to get the eurobond out, but it means
that you pay for more it," one global bank told Reuters, wary of the
political sensitivity.

Will TV debates bring Kenya peace? New Statesman
http://www.newstatesman.com/world-affairs/2013/02/will-tv-debates-bring-kenya-peace

It’s easy to be blasé about election debates in the UK. Our experience
of them is limited to the short-lived, incongruous Clegg-mania of
2010. There is always excitement about American presidential debates –
but when they start, boredom soon takes over. It can be hard to argue
there’s much point to it all.

Kenyans may disagree.

On Monday night, Kenya hosted its first ever presidential debate. On a
stage reminiscent of that seen in American debates – the joke was that
it had been borrowed from the last Kenyan to win a presidential
election, Barack Obama – eight candidates sparred over three and a
half hours.

The hope is that political candidates debating each other will help
prevent a repeat of the 2007 election’s violence, when 1500 people
were killed and arguably only the intervention of Kofi Annan prevented
a full-blown Civil War.

And Kenyans were certainly watching: an estimated 300,000 tweets were
sent about the debate. What did it all mean? Charles Onyango-Obbo, the
Executive Editor of Nation Media Group in Kenya, said it “promoted the
notion that debate and public defence of ones’ positions and record
are a basis on which election outcomes are decided - not just money
and ethnic herding.” He also argued that the civil attitudes of
candidates to one another – especially between the two front-runners,
“might have gone a small way to reduce the possibility of violence” in
the election.

Yet the introduction of a presidential debate this year may be a
tentative sign that Kenya is moving towards a less destructive form of
politics. David Cameron is certainly not alone in his dislike for
election debates. But, for all their flaws, they can be powerful tools
for democratic empowerment. The world needs more TV debates.

Conclusions

Aly-Khan Satchu

@cobbo3 makes an important Point. The Debate showed a Degree of
Camaderie amongst the Protagonists that Their own Supporters will be
forced to reconcile with their Actions on the Ground. The Dissonance
between what happened in 2007/2008 and what we saw on our TV Screens
via the Debate will surely have a powerful normative Influence. In
this respect alone, The Debate scored an impressive Victory. Aly-Khan
Satchu Nairobi

Kenyan economy likely to grow up to 6 pct in 2013 - IMF Reuters
http://www.reuters.com/article/2013/02/14/kenya-imf-idUSL5N0BEC1820130214

The International Monetary Fund expects the Kenyan economy to grow at
least 5.5 to 6 pct this year from an estimated 4.5 to 5 percent in
2012, assuming elections in March go smoothly, a senior fund official
said.

"Kenya has stayed the course of its economic reforms and this has
worked quite well," Domenico Fanizza, who has been leading a mission
to Kenya under the IMF's Extended Credit Facility, told a news
conference on Thursday.

"Fiscal policy should remain geared towards lowering the public
debt-to-GDP ratio further," Fanizza said.

At end 2012 it was slightly below 44 percent, he said in reference to
the debt-to-GDP ratio.

Conclusions

Domenico was quite bullish at Dinner last Sunday with HE Paola Imperiale.

read more


EABL reports H1 PBT -13.088455% Earnings here share price +16.226% 2013
Kenyan Economy


Par Value:                  2/-
Closing Price:           308.00
Total Shares Issued:          790774976.00
Market Capitalization:        243,558,692,608
EPS:             13.46
PE:                 22.883

EABL H1 Earnings through December 2012 versus 6 months through 2011
Net Revenue 30.633b versus 27.777b +10.28188%
Cost of Sales [16.234b] versus [14.321b] +13.358%
Gross Profit 14.399b versus 13.456b +7.008%
Selling and Distribution Costs [2.541b] versus [2.311b]
Administration Expenses [3.564b] versus [3.699b]
Other Operating Expenses [0.436b] versus [0.134b]
Profit from Operations 7.858b versus 7.312b +7.467%
Net Finance Costs [2.061b] versus [0.642b] +221%
H1 Profit Before Taxation 5.797b versus 6.670b -13.088455%
H1 Profit After Taxation 3.982b versus 4.877b -18.351445%
H1 Earnings Per Share 4.75 versus 5.55 -14.4144%
Interim Dividend 1.50 per share versus 2.50 Last Time
Cash from Operating Activities 7.424b

Company Commentary
Net Revenue Kenya grew 12%
Uganda Breweries +3%
Serengeti Tanzania +16%
EABLi +28%
Total Beer Portfolio grew 11%
Total Spirits Portfolio grew 9%
Premium Spirits Portfolio +45%
New Beer Brands introduced Balozi and Kibo Gold
Jebel Gin Innovation

Conclusions

The Headline Numbers of H1 PBT -13.088455% and H1 PAT -18.351445%
might catch People's Attention but beneath that Surface lies a
Muscular Business.
The Half Year on Year Comparison is not flattered by the Financing
Costs around the Purchase of 20% of Kenya Breweries.
Devlin Hainsworth in My Interview spoke to an H2 Acceleration [with
the Proviso that The Election goes well].
EABL is investing now to embed its 91 Year Advantage and I think
Investors will look through the Near Term Noise and like the
Underlying Growth Trajectory.
Top Line Growth of 11% in Beer and 9% in Spirits is more than solid.
Devlin was very excited about Jebel Gin which is being sold at 100 Shillings.
300.00 will be a Floor and then I expect the Price to turn higher.

read more





Kenya Shilling versus The Dollar Live ForexPros 87.451 Last
Kenyan Economy


InterBank rates have been going higher and are at levels now that
should keep the Shilling below 88.00

Nairobi All Share Bloomberg +14.38% 2013
http://www.BLOOMBERG.COM/quote/NSEASI:IND

Nairobi ^NSE20 Bloomberg +12.21% 2013
http://j.mp/ajuMHJ

Every Listed Share can be interrogated here
http://www.rich.co.ke/rcdata/nsestocks.php

read more



 
 
N.S.E Today


The Nairobi All Share eased 0.92 points to close at 107.58.
The Nairobi All Share is +13.409% in 2013.
The All Share closed at 109.50 a Multi Year High on the 13th February and has corrected 1.75% over 2 Sessions.
The Nairobi NSE 20 Index retreated 22.8 points to close at 4614.75.
The Nairobi NSE20 Index is +11.638% in 2013.
The NSE20 closed at a 27 Month High of 4648.09 on the 13th of February.
The NSE20 Index has corrected 0.731% over 2 sessions since reaching that High.
Equity Turnover was 322.032m versus 562.932m and Its noteworthy that on the Downdrafts Volumes are much lower than on the Updrafts.
The Equity Markets entered a Bull Market in May 2012 and Buying the Dip has been the Strategy since that Date.
I expect the Correction Phase to be orderly and shallow and completed in very short order.



N.S.E Equities - Commercial & Services


Safaricom eased 0.892% to close at 5.55 and traded 1.749m shares. There was Buy Side Demand for 908% more shares than were traded during the Session signalling the Price is essentially underwritten here.

Access Kenya rallied 6.35% to close at 6.70 and traded 182,800 shares. Access Kenya is +52.27% in 2013 and the Best Performing Stock at the Securities Exchange.

TPS Serena bounced 3.57% to close at 43.50 and traded 65,600 shares. TPS Serena is +8.75% in 2013 and undervalued. TPS Serena has reversed the Kampala Serena into the listed Company and has a very valuable EA Portfolio. The Price can run up quite sharply especially if the Election goes well.



N.S.E Equities - Finance & Investment


Kenya Commercial Bank traded 2nd at the Securities Exchange and closed unchanged at 37.00. Kenya Commercial Bank traded a 36.50-38.00 range and was trading at Session Highs of 38.00 +2.7% at the Finish Line. Kenya Commercial Bank traded 1.82m shares worth 67.781m. Kenya Commercial Bank had a 2 versus 1 Demand versus Supply Imbalance at the Closing Bell. Kenya Commercial Bank is +24.369% in 2012, has corrected 3.896% off an All Time Closing High of 38.50 reached on the 13th of February. That Correction is over. The Chart Pattern is uniquely bullish. Kenya Commercial Bank will release FY Earnings at the End of the Month.

Diamond Trust was the most actively traded share at the Securities Exchange today. Diamond Trust closed unchanged at 140.00 and traded 513,300 shares worth 71.862m. Diamond Trust is +21.739% in 2013 and this is a Record Closing High reached on the 11th, 13th through today of this Month.

Equity Bank traded 5th at the Securities Exchange. Equity Bank improved 0.9009% to close at 28.00 which is a 23 Month Closing High. Equity Bank is +17.894% in 2013 and was trading at Session Highs of 28.75 +3.6% at the Finish Line. Equity Bank traded 959,000 shares worth 26.88m.

Liberty Kenya Insurance traded a chunky Block of 6.259m shares worth 43.821m all at 7.00 and unchanged.Liberty Kenya is +4.477% in 2013.



N.S.E Equities - Industrial & Allied


EABL reported H1 Earnings before the Opening Bell where Net Revenue increased +10.28188% to 30.633b, Gross Profit increased  +7.008%, H1 Profit from Operations expanded +7.467% to 7.858b, Net Finance Costs increased to 2.061b [related to the Purchase of 20% of the shares in Kenya Breweries], H1 Profit Before Taxation eased -13.088455% to 5.797b, H1 Profit After Taxation  eased -18.351445% to 3.982b and  and H1 Earnings Per Share was 4.75 -14.4144%. Cash from Operating Activities was 7.424b and EABL is paying an Interim Dividend of 1.50 per share. Kenya grew Net Revenue 12%, Serengeti Tanzania grew +16%, Uganda Breweries was slower at +3%. EABLi which is the Frontier Piece of their Portfolio grew +28%. Total Beer Portfolio grew 11% and Total Spirits Portfolio grew 9%. The Premium Spirits Portfolio expanded at an eye popping +45% They have introduced New Beer Brands Balozi and Kibo Gold. And The Jebel Gin Innovation is flying off the shelves. Beneath the Surface of the Headline Numbers lies a very Muscular Business. EABL is investing now to embed its 91 Year Advantage and I think Investors will look through the Near Term Noise and like the Underlying Growth Trajectory. EABL has set a Sequence of Record Closing Highs in 2013 and had rallied +18.867% since the start of the Year through the 13th of February and a Record High of 315.00 on that date. EABL today corrected 4.22% to close at 295.00 on light trading of just 5,900 shares. I believe the Correction will be shallow and go no further than 290.00 and Investors will run the share to new Highs once they digest the Fact that EABL is chasing Growth and has plenty to work with. EABL is +11.32% in 2013.

KenolKobil traded 4th at the Exchange. KenolKobil firmed 0.7194% to close at 14.00 and traded a 13.90-14.20 range and 2.033m shares worth 28.467m. KenolKobil notwithstanding the deafening Silence remains in a Due Diligence Process with Trafigura's Puma Energy where Puma Energy might make an Offer for KenolKobil. I believe KenolKobil is a strategic Fit for Puma and that a Fair Value Price is well North of 17.65. It seems Someone else might be thinking the same going by todays Pick Up in Activity.

BAT eased 0.371% to close at 537.00 and traded 29,500 shares. BAT is +9.368% in 2013 and 0.555% below its all time Closing High of 540 reached on the 13th of this Month. The Correction is very shallow and probably complete.

Athi River Mining firmed 0.84% to close at 60.00 and regain its All Time Closing High. ARM is +34.529% in 2013 and since its stock was split 5 for 1.



by Aly Khan Satchu (www.rich.co.ke)
 
 
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February 2013
 
 
 
 
 
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