home | rich profile | rich freebies | rich tools | rich data | online shop | my account | register |
  rich wrap-ups | **richLIVE** | richPodcasts | richRadio | richTV  | richInterviews  | richCNBC  | 
Satchu's Rich Wrap-Up
Friday 11th of April 2014

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 on the Front Page of the site

read more

#Mindspeak with EAC SECGEN Dr. @rsezibera RICH TV

07-APR-2014 Snapshots from South Africa and Its role in Africa's Economy

Macro Thoughts

Home Thoughts

"What matters in life is not what happens to you but what you remember
and how you remember it."  -- Gabriel Garcí a Márquez

"To him she seemed so beautiful, so seductive, so different from
ordinary people, that he could not understand why no one was as
disturbed as he by the clicking of her heels on the paving stones, why
no one else's heart was wild with the breeze stirred by the sighs of
her veils, why everyone did not go mad with the movements of her
braid, the flight of her hands, the gold of her laughter. He had not
missed a single one of her gestures, not one of the indications of her
character, but he did not dare approach her for fear of destroying the
-- Gabriel Garcí a Márquez, Love in the Time of Cholera

read more

Nato has released satellite images of the Russian military buildup on Ukraine's eastern border:a powerful concentration of fighter planes, helicopters, artillery, infantry & special forces officials say could be ready to move with just 12 hours notice
Law & Politics


I do not see Putin moving to munch some of Eastern Ukraine. Its a Game
of brinkmanship and Hardball and Putin is seeking to keep Ukraine on

A satellite image shows Russian SU-33 fighter planes near Ukraine'sborder. DigitalGlobe

read more

President Vladimir Putin warned on Thursday that Russian gas supplies to Europe could be disrupted if Moscow cuts the flow to Ukraine over unpaid bills, drawing a U.S. accusation that it is using energy "as a tool of coercion".
Law & Politics

In a letter to the leaders of 18 European countries, Putin made clear
that his patience would run out over Kiev's $2.2 billion gas debt to
Russia unless a solution could be brokered urgently.

Russia has nearly doubled the gas price it charges Ukraine, whose
economy is in crisis, since pro-Moscow President Viktor Yanukovich was
overthrown two months ago. Russia then annexed the Ukrainian region of
Crimea, provoking the biggest confrontation with the West since the
Cold War.

Putin said Russian exporter Gazprom would demand advance payment for
gas supplies to Ukraine and "in the event of further violation of the
conditions of payment will completely or partially cease gas

That could have knock-on effects for European Union countries, much of
whose Russian gas flows in pipelines across Ukraine. "We fully realize
that this increases the risk of (Ukraine) siphoning off natural gas
passing through Ukraine's territory and heading to European
consumers," the letter said.

Russia meets 30 percent of Europe's natural gas demand and half of
this goes through Ukraine.

read more

Currency Markets at a Glance WSJ
World Currencies

Euro 1.3892 The dollar headed for its biggest weekly decline against
the euro in six months
Dollar Index 79.42
Japan Yen 101.62
Swiss Franc 0.8765
Pound 1.6770
Aussie 0.9369
India Rupee 60.29 The rupee declined 0.3 percent this week and today
to 60.2525 per dollar as of 10:37 a.m. in Mumbai, according to prices
from local banks compiled by Bloomberg.
South Korea Won 1035.85 The won climbed 0.5 percent to close at
1,035.35 per dollar in Seoul after advancing to 1,031.55 yesterday,
the strongest since August 2008.
Brazil Real 2.2069
Egypt Pound 6.9745
South Africa Rand 10.4798

Dollar Index 3 Month Chart INO 79.42 [trades very poorly]


The dollar fell 0.1 percent to $1.3896 per euro as of 8:48 a.m. in
London, having declined 1.4 percent this week, the most since the
period ended Sept. 20.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10
major counterparts, was little changed at 1,005.54. The gauge has
fallen 1.1 percent since April 4, set for the biggest weekly decline
since the period through Aug. 9.

Fed policy makers cut monthly bond purchases by $10 billion to $55
billion at their March 18-19 meeting. Fed Chair Janet Yellen said the
central bank may start to raise interest rates "around six months"
after ending the asset-buying program.

"Several participants noted that the increase in the median projection
overstated the shift in the projections," according to the minutes of
the Federal Open Market Committee released on April 9. Some expressed
concern the rate forecasts "could be misconstrued as indicating a move
by the committee to a less accommodative reaction function," the
minutes showed.

Euro versus the Dollar 3 Month Chart 1.3892 [+1.4% this week]


Dollar Yen 3 Month Chart INO 101.62


Nasdaq suffered its worst single-day drop since late 2011. The
tech-heavy index .IXIC sank 3.1 percent, while the Nasdaq
biotechnology index .NBI plunged 5.6 percent.


The selling rippled through the broader market pulling the Dow .DJI
down 1.62 percent and the S&P 500 .SPX 2 percent.

Japanese shares sank to six-month lows on Friday as an escalating
selloff on Wall Street spread to Asia and slugged markets that had
been fairly resilient up to now.

What was increasingly looking like a major portfolio shift from
momentum plays in U.S. technology and biotechnology stocks was having
a knock-on effect across all regions and sectors, pressuring even
defensive shares.

Nasdaq 5 day Chart INO


Nasdaq, Nikkei 225 and Dow Jones compared 1 Year Chart @Yahoo


read more

Men are reflected in a screen displaying a graph showing the movements of recent share averages outside a brokerage in Tokyo April 11, 2014. Reuters
International Trade

U.K. House Prices Record Biggest Annual Increase Since 2010


U.K. house prices had their biggest annual gain in 3 1/2 years last
month as a shortage of property for sale supported values, Acadata

Prices in England and Wales rose 7.2 percent from a year earlier to
262,291 pounds ($440,000), the real-estate researcher and LSL Property
Services Plc said in a report in London today. That's the fastest
increase since Sept. 2010. From the previous month, prices jumped 1
percent, led by London.

I reckon There is an outside chance that UK property, which is
projected to rally 25 per cent over five years achieves that in 24 to
30 months 2-AUG-2013


read more

Commodity Markets at a Glance WSJ

Gold 3 Month Chart INO 1320.755 [The 2014 High is already in place]


Crude Oil 3 Month Chart INO 102.09


Futures were little changed in New York and up 1.9 percent this week.

Prices have advanced 4.8 percent this year.

Rough-diamond prices gained 10 percent last year as the U.S.
economy recovered and Chinese consumers bought more of the stones.


Prices have more than doubled in the past five years, according to
data compiled by WWW International Diamond Consultants Ltd.

read more

UN approves force for Central African Republic Washington Post

The U.N. Security Council on Thursday unanimously approved a nearly
12,000-strong U.N. peacekeeping force for Central African Republic,
where mounting violence between Christians and Muslims has brought
killings, torture and sexual violence.

The 10,000 U.N. troops and 1,800 police will take over from 5,000
African Union soldiers -- but not until Sept. 15. A separate
2,000-strong French force in the Central African Republic was
authorized to use "all necessary means" to support the new U.N. force.

In a meeting with South Sudan's minister of the office of president,
Awan Riak, @JohnKerry said: "We will not stand by while the hopes of a
nation are held hostage to short-sighted and destructive actors."


Now, there is a back story to this. @CSMonitor January 30, 2012


You see, through 2011, Sudan provided China with 5 percent of its
total oil imports. You will recall that 35,000 Chinese workers were
evacuated out of Libya in nine days last year and China was rolled
back and right out of Libya. Not so long ago, President Obama
authorized the deployment to Uganda of approximately 100
combat-equipped US forces to help regional forces ostensibly to
"remove from the battlefield" - meaning capture or kill - Lord's
Resistance Army leader Joseph Kony.

Then in January this year, President Barack Obama issued this memorandum.

"By the authority vested in me as President by the Constitution and
the laws of the United States, including section 503(a) of the Foreign
Assistance Act of 1961, as amended, and section 3(a)(1) of the Arms
Export Control Act, as amended, I hereby find that the furnishing of
defense articles and defense services to the Republic of South Sudan
will strengthen the security of the United States and promote world
peace," said the official text of Obama's decision.

It seems to me Sudan has become the epicenter of the US and China's
collision in Africa and that we are watching a 21st-century,
high-stakes proxy war. I have to surmise that the US is underwriting
Salva's overdraft.


Clearly, Washington is not as solidly behind Juba as they were when I
wrote the Piece.

Chinese President Xi Jinping meets with Al-Fatih Izz alden,
speaker of the National Assembly of the Republic of the Sudan, in
Beijing, capital of China, April 3, 2014.


South Africa All Share Bloomberg +6.26% 2014 Record  High


Dollar versus Rand 3 Month Chart INO 10.4787

Woolworths (WHLJ.J), South Africa's second-biggest retailer by value,
aims to open 15 stores in sub-Saharan Africa, including in Kenya,
Mauritius and Namibia, in two to three years, a senior company
official said on Thursday.


The chain has 65 African stores outside South Africa in 11 countries,
including Botswana, Mauritius, Kenya and Ghana.

"The biggest challenge we see is finding good shopping malls. I'd love
to have 650 stores rather than 65 stores but the locations simply
don't exist and that's our biggest inhibiter," Disberry said.

"Even in the most developed markets like Kenya, for example, formal
retail is still only 40 percent of the retail market place."

Egypt Pound versus The Dollar 3 Month Chart INO 6.9745


Egypt EGX30 Bloomberg +17.30% 2014


7,899.46 +131.35 +1.69%

Nigeria All Share Bloomberg -4.54% 2014


The naira rallied to its strongest level in almost six weeks as
Nigeria's state oil company was said to sell dollars to the local


Oil producers, including Nigerian National Petroleum Corp., are the
biggest source of U.S. currency after the Central Bank of Nigeria,
which offers foreign exchange at auctions on Mondays and Wednesdays to
maintain local-currency stability. The naira is the best performer
among 24 African currencies tracked by Bloomberg in April, climbing
2.4 percent.

The Nigerian unit gained 1 percent to 161.19 per dollar by 3:28 p.m.
in Lagos, the commercial capital, the highest since Feb. 28 on an
intraday basis. The currency has climbed for two days, paring this
year's decline to 0.6 percent.

Ghana Stock Exchange Composite Index Bloomberg +9.02% 2014


"We are not really seeing Ghana now as the most dynamic economy on the
continent," said Carlos Lopes, Executive Secretary of the U.N.
Economic Commission for Africa


"One of the difficulties we've had, not only this government but also
the previous government, is managing the expectations of Ghanaians,"
President John Mahama told the Reuters Africa Summit this week. "The
general feeling was that as soon as Ghana started pumping oil all our
problems were going to be solved."

The open question is whether, Ghana is in the cockpit or whether the
markets will simply elbow the Government aside 24-MAR-2014


Ghana's Eurobond has a 9 per cent handle and sentiment has soured so
much, it is entirely feasible that Ghana might print a double digit
yield. Ghana is a near perfect harbinger of what can go wrong when you
front load your recurrent expenditure in the expectation that revenues
are a rising tide. The open question is whether, Ghana is in the
cockpit or whether the markets will simply elbow the Government aside.

SABMiller's Zimbabwe affiliate reported an 18 percent decline in
annual volume of lager beer on Thursday, hit by an economic slowdown
that has dented consumer demand.


Somalia in high speed internet 'culture shock' @BBC


Some residents of Somalia's capital have been experiencing a form of
"culture shock" since fibre optic services launched over the last
week, an internet provider has told the BBC.

"Any video or site just pops up... they're very excited about the
speed," Somalia Wireless's Liban Egal says.

The al-Qaeda-linked al-Shabab group issued a directive in January
ordering all internet services to be stopped, saying those who did not
comply would be seen as "working with the enemy" and dealt with
according to Islamic law.

read more

Equity gets special window to enter mobile telecoms market
Kenyan Economy

Three new service providers are expected to enter the telecoms market
on Friday morning, opening a new front in the battle for control of
mobile money and data service that have become the fastest-growing
revenue streams for the four existing operators.

The three operators to be licensed under a new legal regime will ride
on existing operators' networks to offer select services after signing
agreements with the infrastructure owners.

The three firms to be issued with the Mobile Virtual Network Operator
(MVNO) licences are Finserve Africa Limited, a subsidiary of Equity
Bank, Mobile Pay Limited, owned by Tangaza Money, and Zioncell Kenya.

MVNO licences fall under the Application Service Provider (ASP)
category, which comes with a fee of Sh100,000 and enables an entity to
offer services such as customer registration, SIM card issuance,
billing and customer care to end users without holding a spectrum

This means that the three firms will ride on the existing
infrastructure of the mobile operators at a fee to offer their
services, saving them the pain of heavy capital expenditure associated
with rolling out telecommunication networks and which the regulator
says will promote competition.

But Telkom Kenya's chief executive Mikhael Ghossein said his company
will not allow the MVNOs on its network to offer voice or data
services because this would compromise the quality of services.

Mr Ghossein had instead asked the Communications Authority of Kenya
(CAK) to convene a stakeholders' meeting before licensing the MVNOs.

"We have heard from the press that the regulator intends to license
MVNOs. We will not allow any MVNO on our network to offer voice and
data," he said, adding that Orange was ready to work with them if they
are coming on board to add value to the existing services.

CAK director-general Francis Wangusi, however, said all the three
applicants had sought to use Airtel's Network and that Telkom had
nothing to worry about.

The regulator had last month demanded that Safaricom accept hosting
the MVNOs as part of the conditions for the planned acquisition of
yuMobile's assets -- signalling the regulator's intention to make
infrastructure sharing mandatory.

"Safaricom must submit to the authority, for approval, a framework of
hosting Mobile Virtual Network Operators (MVNOs), indicating the
numbers to be hosted and timelines," the CAK had said in its letter to
the telecoms operator.



read more

Equity Bank share price data and FY Earnings here +4.065% in 2014
Kenyan Economy

Par Value:                  0.50/-
Closing Price:           32.00
Total Shares Issued:          3702777020.00
Market Capitalization:        118,488,864,640
EPS:             3.59
PE:                 8.914

FY through 31st December 2013 versus through 31st December 2012

FY Total Assets 277.728818b versus 243.170458b
FY Loans and Advances net to Customers 171.363429b versus 135.692125b
Customer Deposits 194.620593b versus 165.812458b
FY Interest Income 31.889624b versus 30.847947b
FY Total Interest Expenses 5.399033b versus 6.883814b
FY Net Interest Income 26.490591b versus 23.964133b
FY Total Non-Interest Income 15.370697b versus 12.863346b
Total Operating Income 41.861288b versus 36.827479b
Staff Costs 9.024259b versus 7.145470b +26.293%
Total Operating Expenses 22.710866b versus 19.578805b
Full Year Profit Before Tax 19.150422b versus 17.248674b +11.025%
Full Year profit After Tax 13.277796b versus 12.080255b +9.9132%
FY EPS 3.59 versus 3.26 +10.122%
Final Dividend of 1.50 a share versus 1.25 +20.00%

read more

Safaricom closed at a record High of 12.75 and is +17.511% in 2014 share data here
Kenyan Economy

Par Value:                  0.05/-
Closing Price:           12.75
Total Shares Issued:          40044601000.00
Market Capitalization:        510,568,662,750
EPS:             0.44
PE:                 28.977

First Half Earnings for the Period ended 30 September 2013

H1 Revenue 69.201287b versus 59.118149b +17.1%
H1 Cost of Sales [30.215501b] versus [27.529922b] +9.8%
H1 Gross Profit 38.985786b versus 31.88227b +23.4%
H1 Operating Expenses [22.829488b] versus [19.206278b] +18.9%
H1 PBT 15.908812b versus 11.509998b +38.2%
H1 PAT 11.260242b versus 7.7774849b +44.8%
H1 EPS 0.28 versus 0.19 +47.4%

read more

@KenyaAirways expects to return to full-year profit, its commercial director said on Thursday
Kenyan Economy

Among Africa's largest airlines, it is expanding its fleet with nine
Boeing Co. 787 Dreamliners due for delivery by July 2015 and the
launch this month of low-cost offshoot Jambojet.

"The airline is about to embark on a very strong growth path," said
Commercial Director Gerald Clarke, as the carrier looks to rebound
from a pretax loss of 10.826 billion shillings ($124.97 million) in
the year which ended in March 2013.

Its results are due on June 12.

Kenya's first budget airline, Jambojet, takes its name from the
Swahili for "hello" and aims to carry 6O0,000 passengers in its first
year. [ID:nL6N0MF2FQ]

Clarke told a news conference in Nairobi that Kenya Airways had also
signed a marketing and codesharing partnership with South African
budget airline kulula.com owned by Comair Ltd.

This will involve branding and codesharing on flights serving South
African cities including Cape Town, Durban, George and East London as
well as multiple daily flights between Nairobi and Johannesburg.

Clarke said Kenya Airways would seek similar tie-ups with other
low-cost carriers across the continent.

read more

@KenyaAirways share price data here -0.766% 2014
Kenyan Economy

President Uhuru Kenyatta with Kenya Airways CEO Titus Naikuni test the
comfort of a dreamliner during its launch on Saturday Photo Micheal


Dr. Titus Naikuni CEO @KenyaAirways #Mindspeak @YouTube


Interior Secretary Joseph ole Lenku has sensationally linked leaders
opposed to the police crackdown in Eastleigh to tax evasion activities
in the area.


Fielding questions in a live radio interview with Easy FM, the cabinet
secretary claimed the leaders were behind tax evasion cartels in

"Every time there's a killing, it wakes more of them up. Now there are
boys going to the mosque with daggers. One day they will bring guns."
Mr Shariff, known by the nickname "Makaburi" (meaning graveyard in


For all his precautions with cameras and not leaving his home, he also
relished martyrdom: "The jihad is a tree," he said. "The more blood
you spill, the more it will grow."

Makaburi got his nickname for threatening to disinter the graves of
Sufi Muslims whose burial rites clashed with his literalist reading of
the Koran.


Court stops CMA from clearing Rea Vipingo takeover


The High Court has stopped the Capital Markets Authority from clearing
the takeover of Rea Vipingo by any of the three bidders until a
dispute over the offer prices is determined.

Vania Investment Pool (VIP) successfully applied before Justice Weldon
Korir that the takeover timetable be suspended on the grounds that its
revised bid price of Sh80 per share was rejected by the regulator for
allegedly being filed outside the deadline.

CMA had targeted to complete the takeover by the end of June.

"An order of prohibition stopping the respondent (CMA) from taking any
further step or implementing any timetable it has set for completing
the takeover of Rea Vipingo Plantations Ltd based on the directions
that offers made could not be varied after February 28, 2014," ordered
Justice Korir.

According to court papers, VIP accuses CMA of denying it a chance to
vary its earlier offer of Sh55.

CMA had in a notice published on February 5 set February 28 as the
closing date for submission of offers and counteroffers.

"The said notice communicating directions was purported to have been
issued under Section 11(3) (w) of the CMA Act. The decision to set a
deadline of February 28 is contrary to the mandatory provisions of the
regulations," said Dilesh Somchand Bid, a director at VIP in a sworn

The county government of Kilifi, where Rea Vipingo owns 10,570 acres,
has separately moved to court to stop the impending sale of the
company, saying the firm fraudulently acquired public land.

Kenya Shilling versus The Dollar Live ForexPros 86.395


Nairobi All Share Bloomberg +5.64% 2014 [0.4345% below a Record High
set 26th March 2014]


144.36 +0.68 +0.47%

Nairobi ^NSE20 Bloomberg -0.974% 2014


4,878.88 -13.82 -0.28%

Every Listed Share can be interrogated here


read more

N.S.E Today

The Nairobi All Share rallied +0.54% to set a Fresh Record Closing
High of 145.14
The Nairobi All Share is +6.212% in 2014.
The Nairobi NSE20 regained the 4,900 Level and closed at 4905.46 and
+26.57 points.
Equity Turnover topped 2b at 2.144b shillings.
Safaricom traded 123.202m shares more than twice its highest volume
session to date in 2014.

N.S.E Equities - Commercial & Services

Safaricom which came into todays Session at a Fresh Record High of
12.75 and +17.511% in 2014, traded 123.202m shares [more than twice
the previous volume High in 2014] worth 1.575b Shillings and 73.47% of
a Banner Session where the Total Turnover topped 2b shillings and
totalled 2.144b. You will recall I have had a 13.50 Price Objective
ahead or coincident with the release of the Full Year Results. That is
very much in sight. Safaricom's weighted average Price was 12.79 and a
fingernail away from setting another Fresh Record. Safaricom evidently
has taken the news that three firms are to be issued with the Mobile
Virtual Network Operator (MVNO) licence, very much in its stride.

Safaricom Insert 5 Month Volume Graph in Email


Kenya Airways' Commercial Director was quoted by Reuters_Summits that
Kenya Airways would return a Full Year Profit and "The airline is
about to embark on a very strong growth path." This is an important
Statement and I expect the Price to react from as early as next week.
Kenya Airways is now properly embarked on a major bulking up and those
who raise the Issue of Demand are seriously underestimating the
exponential nature of SSA Travel Demand. Furthermore I like the tie up
with the SA low cast carrier, its a clever and penetrating Trade.
Kenya Airways closed unchanged at 12.95 and traded 176,100 shares.

Uchumi firmed 0.69% to close at 14.55 and was trading at 15.60 +7.96%
session highs at the close. Uchumi traded 168,300 shares. The Share is
viciously oversold. Frankly at this price of 14.55, Uchumi has a
market capitalisation of 3.86b which is $44.646m. I would have thought
that is an incredibly attractive Entry Point for a bigger player
seeking a Foot Hold and a Foot print in the EAC.

N.S.E Equities - Finance & Investment

Kenya Commercial Bank rallied 2.162% to close at 47.25 and was trading
at 47.75 +3.24% at the Finish Line. Kenya Commercial Bank traded
3.347m shares worth 158.188m. The Quality of the Buying of late ,which
can be characterised as heavy and real consistent has been noteworthy.
Buyers outpaced Sellers by a Factor of 42 versus 15 at the Closing
Equity Bank firmed 0.78% to close at 32.25. Equity Bank traded 1.308m
shares worth 42.219m and this was the Bourse's first opportunity to
react to the news that  Finserve Africa Limited, a subsidiary of
Equity Bank, had been issued with a Mobile Virtual Network Operator
(MVNO) licence. Equity Bank is +4.878% in 2014.
Barclays Bank firmed 0.62% to close at 16.20 and traded 2.237m shares
worth 36.241m. Barclays Bank is +2.8571% in 2014. I foresee Barclays
beginning to play a more offensive Game.

Transcentury was the biggest Winner at the Securities Exchange today
and rallied 9% to close at 27.25 and traded 28,000 shares. Buyers
outpaced Sellers by a Factor of 6 versus 1 on the Board.

Liberty Kenya spiked a further 2.0467% higher to close at 17.45.
Liberty has rallied 12.944% and over two Trading sessions since
releasing its FY 2013 Earnings where it announced a +28.91% FY Profit
After Tax Acceleration.
CIC Insurance rallied 4.65% to close at 9.00 and traded 1.265m shares.
CIC Insurance is +51.26% in 2014.
Pan Africa firmed 2.46% to close at 125.00 and traded 7,600 shares.
Pan Africa is +40.449% in 2014 with Sanlam confirming this week that
they were looking for more shares.

N.S.E Equities - Industrial & Allied

EABL closed unchanged at 264.00 but was trading at 266.00 +0.76% at
the Finish. EABL traded 506,000 shares worth 134.042m. There is
muscular Buy Side Support at these Levels and furthermore EABL has a
preeminent Footprint in the EAC and I expect Consumption to track a
more elevated GDP Trajectory.

ARM firmed 1.807% to close at 84.50 and traded 571,400 shares worth
48.538m. ARM reported FY 2013 Earnings where FY Turnover accelerated
+24% and FY Profit After Tax expanded 8%. ARM bulked up but suffered
margin compression because they imported the Clinker. Shareholders can
expect material margin expansion in H2 when the Tanga Clinker Facility
comes on stream.  ARM was trading at 88.50 +6.63% at the Finale.


by Aly Khan Satchu (www.rich.co.ke)
Login / Register

Forgot your password? Register Now
April 2014

In order to post a comment we require you to be logged in after registering with us and create an online profile.