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Satchu's Rich Wrap-Up
 
 
Thursday 20th of March 2014
 
Morning
Africa

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
http://www.rich.co.ke

I thank His Excellency the British High Commissioner to Kenya Dr.
Christian Turner @HCCTurner for the invite to Dinner with BG. It was
super to catch up with Rob McCaire, Vimal Shah, Dr Oduor-Otieno, Eddie
Njoroge and many others.

read more


Africa Rising conference will be held May 29-30, 2014, in Maputo @IMFNews
Africa


The event is intended to follow up on the 2009 Tanzania Conference,
which helped galvanize international support for Africa after the 2008
financial crisis. The conference will bring together policymakers from
Africa and beyond, the private sector, civil society, academics, and
private foundations with the goal of sustaining the current growth and
sharing its benefits among African populations.

read more


17-MAR-2014 :: Of Matters UK And The Scramble For Crimea
Africa


So yes London is booming and I think the city and by extension the UK
is a little like Dubai. Both cities have become safe havens in an
uncertain world.

read more




Micex Composite IndexMCX:MCX via the @FT [Buy on Retracements]
Africa


Russian equities have the cheapest valuations among 21 developing
countries monitored by Bloomberg, with shares on the Micex trading at
4.8 times projected 12-month earnings, compared with a multiple of 9.4
for the MSCI Emerging Markets Index.

Ruble Gains for 3rd Day on Bets Russia Sanction Impact Limited
http://www.bloomberg.com/news/2014-03-19/ruble-gains-for-3rd-day-on-bets-russia-sanction-impact-limited.html

Home Thoughts

"It is so much simpler to bury reality than it is to dispose of dreams"
-- Don DeLillo, Americana

"Stories have no point if they don't absorb our terror."
-- Don DeLillo, Mao II

"I used to think it was possible for an artist to alter the inner life
of the culture. Now bomb-makers and gunmen have taken that territory."
-- Don DeLillo, Mao II

"The world is full of abandoned meanings. In the commonplace I find
unexpected themes and intensities."
-- Don DeLillo, White Noise

"The less there was to see, the harder he looked, the more he saw.
(Point Omega)"
-- Don DeLillo

read more


President @BarackObama on Thursday ruled out a "military excursion" by the United States in Ukraine saying that engaging Russia militarily "would not be appropriate." @NBC
Law & Politics


In a separate interview with KSDK in St. Louis, Obama reiterated that
a military option is not on the table but that the United States and
its allies are prepared to take "even more disruptive economic
actions."

"Obviously, we do not need to trigger an actual war with Russia," he
said. "The Ukrainians don't want that. Nobody would want that."

read more


They have come to believe in their exclusivity and exceptionalism, that they can decide the destinies of the world, that only they can ever be right. Vladimir Putin Verbatim Transcript
Law & Politics


There was a whole series of controlled "colour" revolutions. Clearly,
the people in those nations, where these events took place, were sick
of tyranny and poverty, of their lack of prospects; but these feelings
were taken advantage of cynically.

In short, we have every reason to assume that the infamous policy of
containment, led in the 18th, 19th and 20th centuries, continues
today. They are constantly trying to sweep us into a corner because we
have an independent position, because we maintain it and because we
call things like they are and do not engage in hypocrisy. But there is
a limit to everything. And with Ukraine, our western partners have
crossed the line, playing the bear and acting irresponsibly and
unprofessionally.

If you compress the spring all the way to its limit, it will snap back
hard. You must always remember this.

We do not want to divide Ukraine; we do not need that. As for Crimea,
it was and remains a Russian, Ukrainian, and Crimean-Tatar land.

NATO remains a military alliance, and we are against having a military
alliance making itself at home right in our backyard or in our
historic territory. I simply cannot imagine that we would travel to
Sevastopol to visit NATO sailors. Of course, most of them are
wonderful guys, but it would be better to have them come and visit us,
be our guests, rather than the other way round.

Members of the Federation Council, deputies of the State Duma,
citizens of Russia, residents of Crimea and Sevastopol, today, in
accordance with the people's will, I submit to the Federal Assembly a
request to consider a Constitutional Law on the creation of two new
constituent entities within the Russian Federation: the Republic of
Crimea and the city of Sevastopol, and to ratify the treaty on
admitting to the Russian Federation Crimea and Sevastopol, which is
already ready for signing. I stand assured of your support.

March 18, 2014, 15:50  The Kremlin, Moscow

Conclusions

Frankly, I think he has a Point and the Execution/Annexation was
relentless and expeditious.

read more


It would be simply unconscionable for Putin to lose Crimea. It would represent the castration of Russia as a geopolitical player 17th March 2014
Law & Politics


It was Zbigniew Brzezinski who said:

"Ukraine, a new and important space on the Eurasian chessboard, is a
geopolitical pivot because its very existence as an independent
country helps to transform Russia. Without Ukraine, Russia ceases to
be a Eurasian empire."

read more



Michael McFaul, who recently stepped down as U.S. ambassador to Russia, says President Vladimir Putin is riding "an ugly nationalistic fervor that's off the charts," and is likely to escalate tensions with the U.S. and Europe over Ukraine.
Law & Politics


"I don't think he wants an off-ramp," McFaul said in a telephone interview.

After annexing Crimea, Russian President Vladimir Putin may not need
to invade the rest of Ukraine to bring it to its knees. Political and
financial sabotage can work just as well.

http://www.bloomberg.com/news/2014-03-19/putin-s-tools-of-sabotage-trump-urgency-of-ukraine-intervention.html

While Putin promised that Russia isn't about to send in troops, he has
plenty of other tools to undermine the Western-backed Ukrainian
government. They include fomenting insurrection by Russian-speakers,
waging a cyberwar and crippling Ukraine financially by ramping up
natural gas prices and demanding the repayment of billions of dollars
in debts.

"Putin has the means to drastically destabilize Ukraine," Fredrik
Erixon, director of the European Centre for International Political
Economy in Brussels, said by phone. "The more problems and unrest, the
better his chances of getting east Ukraine to exit and join Russia."

Vladimir Putin @PutinRF_Eng

http://thebobbyjames.files.wordpress.com/2013/07/vladimir-putin.jpg

@AmbassadorPower  also compared Russia's takeover of Crimea to theft.
"A thief can steal property, but that does not confer the right of
ownership on the thief," she said.

http://www.aljazeera.com/news/europe/2014/03/us-russia-exchange-threats-at-un-meeting-20143201422555647.html

The Russian ambassador shot back: "It is simply unacceptable to listen
to these insults addressed to our country."

He added, "If the delegation of the United States of America expects
our cooperation in the Security Council on other issues, then Mrs.
@AmbassadorPower must understand this quite clearly." By then, Power
had left the meeting to her deputy.

read more



The death of revolution By Lewis H Lapham
Law & Politics


For the last several years, the word "revolution" has been hanging
around backstage on the national television talk-show circuit waiting
for somebody, anybody - visionary poet, unemployed automobile worker,
late-night comedian - to cue its appearance on camera. I picture the
word sitting alone in the green room with the bottled water and a
banana, armed with press clippings of its once-upon-a-time star turns
in America's political theater (tie-dyed and brassiere-less on the
barricades of the 1960s countercultural insurrection, short-haired and
seersucker smug behind the desks of the 1980s Reagan Risorgimento),
asking itself why it's not being brought into the segment between the
German and the Japanese car commercials.

Surely even the teleprompter must know that it is the beast in the
belly of the news reports.

Czech playwright Vaclav Havel just prior to being imprisoned in the
late 1970s by the Soviet regime then governing Czechoslovakia:

No attempt at revolt could ever hope to set up even a minimum of
resonance in the rest of society, because that society is 'soporific,'
submerged in a consumer rat race ... Even if revolt were possible,
however, it would remain the solitary gesture of a few isolated
individuals, and they would be opposed not only by a gigantic
apparatus of national (and supranational) power, but also by the very
society in whose name they were mounting their revolt in the first
place.

#MH370 Pedro Moura Pinheiro/Flickr

http://www.wired.com/autopia/2014/03/mh370-electrical-fire/

According to a 2007 report by demography-focussed thinktank Population
Action, 80% of civil conflicts between 1970 and the end of the
millennium took place in nations where at least 60% of the population
had not reached 30.

http://www.theguardian.com/world/2014/mar/19/growing-youth-population-fuel-political-unrest-middle-east-south-america

Still, Ahmad Abd Allah, the Egyptian activist, can dream. "Some day,
we're going to be the winners," he says

read more


The dollar held its biggest gain in seven months versus a basket of its peers after Federal Reserve policy makers signaled they'll probably raise interest rates by the middle of next year.
International Trade


The Bloomberg Dollar Spot Index, which monitors the U.S. currency
against its 10 major counterparts, was little changed at 1,020.01 as
of 2:20 p.m. in Tokyo following a 0.8 percent advance yesterday, the
most since Aug. 1 on a closing basis.

The dollar traded at $1.3836 per euro after climbing 0.7 percent
yesterday to $1.3833. It was little changed at 102.31 yen following a
0.9 percent advance in New York.

Policy makers also reduced monthly bond-buying by $10 billion to $55
billion and said in a statement it will slow purchases in "further
measured steps." Economists in a Bloomberg News survey forecast policy
makers will announce an end to the program in October.

Fed Chair Janet Yellen sees a "considerable time" between the end of
the stimulus and the first rate increase, meaning "around six months
or that type of thing," she said at a press conference after presiding
her first policy meeting.

Central-bank officials estimated the benchmark rate target will be 1
percent at the end of 2015 and 2.25 percent a year later. That was
higher than in December, when they estimated 0.75 percent and 1.75
percent. The rate has been held at zero to 0.25 percent since December
2008 to support the economy.

"The outlook for the pace of policy tightening is faster than markets
have priced in," said Yuki Sakasai, a currency strategist in New York
at Barclays Plc. "The Fed's announcement confirms our view that the
rising-dollar trend will accelerate in the six-month to one-year
term."

Conclusions

Yellen is exhibiting more urgency about normalising Monetary Policy
than I thought she would and hence the quite strong rebound in the
dollar.

read more


Currency Markets at a Glance WSJ
World Currencies


Euro 1.3837
Dollar Index 79.97
Japan Yen 102.29
Swiss Franc 0.8811
Pound 1.6539
Aussie 0.9017
India Rupee 61.19
South Korea Won 1076.35
Brazil Real 2.3471
Egypt Pound 6.9563
South Africa Rand 10.8707

Sterling 1 Year Chart INO 1.6539

http://quotes.ino.com/charting/index.html?s=FOREX_GBPUSD&v=d12&t=c&a=50&w=1

The pound has gained 10 percent in the past 12 months, the best
performer among 10 developed-nation currencies tracked by Bloomberg
Correlation-Weighted Indexes

Dollar Index 3 Month Chart INO 79.97

http://quotes.ino.com/charting/index.html?s=NYBOT_DX&v=d3&t=c&a=50&w=1

Euro versus the Dollar 3 Month Chart 1.3837

http://quotes.ino.com/charting/index.html?s=FOREX_EURUSD&v=d3&t=c&a=50&w=1

read more



Phnom Penh, Cambodia Selfie
Emerging Markets


: 'An dilapidated structure in the middle of fast-changing Phnom Penh,
the White Building is one of its most vibrant communities, housing
more than 2,500 residents including classical dancers, master
musicians, craftspeople, cultural workers, civil servants and street
vendors.' Photograph: Damien Rayuela/GuardianWitness

Frontier Markets

read more


Mozambique's government has accepted a demand by the opposition Renamo for foreign observers to monitor talks aimed at ending clashes that have destabilised the country, local media reported on Tuesday.
Africa


Government negotiators agreed to calling in international mediators
during negotiations late on Monday as fresh skirmishes between
government and guerilla forces took place in the central Sofala
province, according to independent daily O Pais.

"If this comforts Renamo, the government is open to the presence of
international observers for the specific process of stopping attacks
by Renamo on defenceless citizens and on national defence forces,"
chief government negotiator Jose Pacheco told the paper.

China's trade with Africa at record high CS Monitor

http://www.csmonitor.com/World/Africa/Africa-Monitor/2014/0319/China-s-trade-with-Africa-at-record-high

China's enduring importance for Africa was strengthened again in 2013,
when trade between the globe's most populous country and its poorest
continent soared to a record total of $200 billion. That included a 44
percent spurt in Chinese direct investment in Africa.

US trade with Africa, but only in goods, not services, totaled $85
billion in 2013. Services amounted to about another $11 billion.
European trade with Africa reached $137 billion in 2013.

So long as China grows its own GDP at more than 7 percent it will need
to rely on the resource commodities of Africa - the bulk of this $200
billion trade.

China's trade with Africa is largely import driven, with China taking
petroleum mostly from Nigeria, Angola, Equatorial Guinea, Ghana,
Cameroon, the Republic of Congo, Gabon, Uganda, South Sudan, and the
Sudan.

It purchases copper, cobalt, cadmium, ferrochrome, platinum, coltan,
diamonds, and gold largely for industrial purposes from countries such
as the Democratic Republic of Congo, Liberia, South Africa, Zambia,
and Zimbabwe.

In 2011, the largest African exporters to China were South Africa and
Angola, followed by the Democratic Republic of Congo, Mauritania, the
Sudan and South Sudan, and Zambia

As the world's largest importer of iron ore, China has also been
diversifying its purchases away from traditional suppliers such as
Australia and South Africa, and toward more ore-trade with 15 African
nations, including such previously globally unimportant producers of
the metal as Guinea-Bissau, Swaziland, Tanzania, Uganda, and Zambia.

China's exports are a smaller proportion of this $200 billion trade
than its imports.

Africa offers markets, but smaller and contained ones, for
Chinese-manufactured consumables: textiles, clothing, blankets,
inexpensive footwear, headgear, toys, telecoms equipment and
affordable cell telephones, furniture, caskets, computers, and
televisions.

To governments, China also sells jet fighters, military equipment and
ammunition, military uniforms, heavy communications technology,
agricultural implements, road machinery, and turbines and generators.

This month China even shipped patrol vessels to Nigeria capable of
carrying helicopters and defending the Nigerian offshore oil fields
against pirates.

The top ten beneficiaries of China's assistance and expanded
concessionary loans (components of the great rise in two-way trade)
are: Ghana ($11.4 billion), Nigeria ($8.4 billion), the Sudan
(including South Sudan) and Ethiopia (both $5.4 billion), Mauritania
($ 4.6 billion), Angola ($4.2 billion), Equatorial Guinea and Zimbabwe
(both $3.8 billion), Cameroon ($3 billion), and South Africa ($2.3
billion).

The figures are from 2000-2011 and do not include more recent
ventures, especially those in the Democratic Republic of Congo, Kenya,
Madagascar, Tanzania, Zambia, and Zimbabwe.

read more


11-17 8 maps that will change the way you look at Africa
Africa


1. Where the world's 7 billion live

2. How the world would look if it were measured by its wealth, 2015

3. Now, the real size of Africa

5. Global Vegetation

6. World Water Risk

7. Global Internet Usage

8. Energy Poverty

read more


South Africa All Share Bloomberg +1.54% 2014
Africa


South African President Jacob Zuma "benefitted unduly" from a $23
million state-funded security upgrade to his private home that
included a swimming pool, cattle enclosure and amphitheatre, the
public protector said on Wednesday.

http://www.reuters.com/article/2014/03/19/us-safrica-zuma-report-idUSBREA2I0M320140319

In a damning report released six weeks before an election, South
Africa's top anti-corruption watchdog accused Zuma of conduct
"inconsistent with his office" and said he should repay a reasonable
part of the cost of the unnecessary renovations.

"The President tacitly accepted the implementation of all measures at
his residence and has unduly benefitted from the enormous capital
investment in the non-security installations at his private
residence," Public Protector Thuli Madonsela said in her report.

Dollar versus Rand 3 Month Chart INO 10.870525

http://quotes.ino.com/charting/index.html?s=FOREX_USDZAR&t=c&a=50&w=1&v=d3

Egypt Pound versus The Dollar 3 Month Chart INO 6.9544

http://quotes.ino.com/charting/index.html?s=FOREX_USDEGP&v=d3&t=c&a=50&w=1

Egypt EGX30 Bloomberg +23.02% 2014 [more than 5 year highs]

http://www.bloomberg.com/quote/CASE:IND

8,286.85 +90.02 +1.10%

If the equity markets had a vote in Egypt, army chief general Abdel
Fattah al-Sisi would actually get one of those impossible- to-believe
votes of 99.8% 20-JAN-2014

http://www.rich.co.ke/media/docs/038NSX2001.pdf

General Abdel Fattah al-Sisi speaks during the graduation of a new
batch of non-commissioned officers at the NCOs' Institute in Cairo

http://vid.alarabiya.net/images/2013/12/26/fec16822-07b1-400b-ada1-75f4b2e2279e/fec16822-07b1-400b-ada1-75f4b2e2279e_16x9_788x442.jpg

Egyptian youths in Cairo during the unrest in November 2011.
Photograph: Kim Badawi Images/Getty Images

http://www.theguardian.com/world/2014/mar/19/growing-youth-population-fuel-political-unrest-middle-east-south-america

Nigeria All Share Bloomberg -9.84% 2014

http://www.bloomberg.com/quote/NGSEINDX:IND

Ghana Stock Exchange Composite Index Bloomberg +11.46% 2014

http://www.bloomberg.com/quote/GGSECI:IND

The Zambian kwacha has been one of the weakest currencies against
the US dollar this year, losing more than 8 per cent of its value
against the world's reserve currency during the past month alone

http://blogs.ft.com/beyond-brics/2014/03/19/coppers-decline-sends-zambian-kwacha-into-tailspin/#axzz2wTz1CFiU

Ethiopia Sees Output From Africa's Biggest Power Plant by 2015

http://www.bloomberg.com/news/2014-03-19/ethiopia-sees-output-from-africa-s-biggest-power-plant-by-2015.html

Ethiopia will begin generating electricity within 18 months from what
will be Africa's largest power plant, the government said.

The sale of 7.1 billion birr ($367 million) of bonds over the past
three years to domestic investors, has contributed to the 27 billion
birr spent so far on the 75.5 billion birr Grand Ethiopian Renaissance
Dam project, said Zadig Abraha, deputy general director of the GERD
national coordination office. The central bank in April 2011 ordered
banks to buy government bonds equivalent to 27 percent of their loans
to help fund infrastructure projects.

Ethiopia's funding of the 6,000-megawatt hydropower project represents
"the golden age of our history as far as economic development and
public participation is concerned," Zadig said by phone on March 18
from the capital, Addis Ababa. "If we're to meet the power demand we
have to construct these mega projects."

Africa's second-most populous country after Nigeria is boosting
electricity output to cater for increased demand as economic growth
surges. The economy expanded at an average 9.3 percent over the past
four years and the government is targeting growth of more than 10
percent, which may lead to annual increases in electricity demand of
as much as 35 percent, Zadig said.

An increase in Ethiopia's current generating capacity of 2,000
megawatts will also allow the country to reduce a trade deficit of
$8.5 billion last year by selling excess electricity.

The government already exports power to Sudan and Djibouti. It's also
building a transmission line to Kenya and is in discussions with Yemen
and war-torn South Sudan, Zadig said. Once GERD is finished, and other
hydropower projects including the 1,870-megawatt Gibe III are on line,
Ethiopia may earn $2 billion a year from the exports, he said.

The construction of GERD is opposed by Egypt, which says it will
reduce the flow of the Nile, the world's longest river that provides
almost all its water. Egypt's opposition to the project blocked
Ethiopia's access to foreign credit, he said.

"The only option on the table was to construct the dam by our own
capacity," Zadig said, adding that the state-owned Ethiopian Electric
Power Corp. and public contributions would fund the rest of the
project.

Sudan, the other affected nation, supports the project that's
scheduled for completion in 2018, partly because it will allow the
country to import cheaper Ethiopian electricity. The dam is being
built 18 miles (30 kilometers) from the Sudanese border on the Blue
Nile River, the main tributary of the Nile.

Two turbines at the plant will start producing 750 megawatts of power
during the Ethiopian calendar year that begins Sept. 11, depending on
rainfall patterns, Zadig said.

Coors-Led African Buyout Fund Negotiating From Kenya to Nigeria

http://www.bloomberg.com/news/2014-03-19/coors-led-buyout-fund-hires-ex-tpg-partner-to-head-london-office.html

One Thousand & One Voices LLC, an Africa-focused private-equity fund,
said it's in talks about investing in two Nigerian companies and
another in Kenya.

In Nigeria, "one is a purely consumer-facing opportunity the other is
also in the manufacturing space with a consumer theme to it," Hendrik
Jordaan, president and chief executive officer of the fund, said in an
interview today. "The companies we're looking at are all private."

One Thousand & One Voices, started by the great grandson of Coors
Brewing Co.'s founder, is hunting for private-equity investments that
tap Africa's growing consumer markets. The fund, which hired former
TPG Capital partner Dag Skattum, has received commitments from more
than 15 of the world's wealthiest families since starting last May and
expects to raise a targeted $300 million by the end of this year,
Jordaan said.

"We have sufficient capital from over 15 families that allows us to
close on all the transactions in our pipeline," Jordaan said in Lagos,
Nigeria's commercial capital, adding that the fund is also in talks
with potential family investors in Latin America, Southeast Asia and
Africa. "I'm going to be in London and Paris later this week, meeting
with leading families in those geographies."

The fund is in talks with wealthy Nigerian families, said Jordaan, who
declined to be more specific. It will probably lead a delegation of
families to the World Economic Forum's conference in Nigeria's
capital, Abuja in May, he said.

The fund, which expects to close at least one deal in southern Africa
in the second quarter of this year, said today that Skattum, 53, will
be the firm's managing director in London. One Thousand & One Voices
also hired Kate Matheny, 45, as chief financial officer, based in
Denver, according to a statement from the fund. She held the same
position at KRG Capital, it said.

Africa´s natural resources wealth, mapped by the African Progress
Panel. #oil #gas #mining

https://twitter.com/gibajaalberto/status/445476688646791168/photo/1

South Sudan's oil production is steady at about 160,000 barrels per
day and will take time to recover to previous levels, an oil ministry
official said

http://in.reuters.com/article/2014/03/19/southsudan-oil-idINL6N0MG30H20140319

Production on Monday was 162,000 bpd from fields in Upper Nile state,
said the oil ministry official who asked not to be identified. That
level, little changed from the start of the year, is down about a
third from the 245,000 bpd recorded before the conflict flared up in
mid-December.

Oil facilities in Unity state have been shut since supporters of
President Salva Kiir fought defectors who backed his sacked deputy,
Riek Machar.

"They set the facility ablaze. It will take long to restart," the official said.

read more


COOP Bank reports FY PAT 2013 +17.922% Earnings here share price +14.084% 2014
Kenyan Economy


Par Value:                  1/-
Closing Price:           20.25
Total Shares Issued:          4190845080.00
Market Capitalization:        84,864,612,870
EPS:             2.17
PE:                 9.332

FY Earnings through Dec 2013 versus FY through December 2012

FY Loans and Advances to customers [net] 137.087227b versus
119.087748b +15.1144%
FY Total Assets 231.215359b versus 200.886582b
FY Customer Deposits 175.425121b versus 162.083580b +8.231%
FY Total Interest Income 24.541725b versus 24.356127b
FY Total Interest Expenses 5.915815b versus 8.680008b -31.8455%
FY Net Interest Income 18.625910b versus 15.676118b
FY Total Non-Interest Income 9.263893b versus 8.169217b
FY Total Operating Income 27.889803b versus 23.845336b
OTHER OPERATING EXPENSES
Loan Loss Provision 778.157m versus 999.882m
Staff Costs 8.013780b versus 6.096093b +31.457%
FY Total Operating Expenses 17.382727b versus 14.235196b +22.11090%
FY Profit Before Tax 10.872444b versus 9.983772b +8.901%
FY Profit After Tax 9.108185b versus 7.723858b +17.922%
FY Earnings Per share 2.17 versus 1.84 +17.934%
Full Year Dividend 50 cents a share and unchanged

Company Commentary


Bonus Share of 1 for every 6 held.

Conclusions


Probably aims higher and through 21.70 on some bonus Euphoria. More
than solid Earnings.

read more


Jubilee Insurance Company Ltd reports FY 2013 PAT +9.5563% Earnings here +14.285% in 2014
Kenyan Economy


Par Value:                  5/-
Closing Price:           320.00
Total Shares Issued:          59900000.00
Market Capitalization:        19,168,000,000
EPS:             38.00
PE:                8.421

One of the oldest composite insurance companies in Kenya.

FY 2013 Earnings through 31st December 2013 versus 12 months through
31st December 2012

FY Gross earned premium revenue 18.087946b versus 15.399514b +17%
Less Outward Reinsurance 7.314561b versus 6.026532b
Net Insurance premium revenue 10.733385b versus 9.372982b +15%
FY Investment and Other income 3.697032b versus 3.156981b
Net Fair Value gains on Financial Assets at Fair value through Profit
and Loss 1.887877b versus 443.547m
Commissions earned 1.684345b versus 1.352848b
FY Total Income 18.042639b versus 14.326358b +26%
FY Claims and Policy Holders benefits payable 16.636045b versus 12.198203b
FY Claims recoverable from re-insurers 5.650491b versus 3.642666b
FY Net Insurance benefits and claims 10.985554b versus 8.555537b
FY Operating and other Expenses 2.483628b versus 2.203878b
FY Commission payable 2.345153b versus 2.020857b
FY Total expenses and commissions 4.828781b versus 4.224735b +14%
Result of operating Activities 2.228304b versus 1.546086b
Share of result of associates 970.513m versus 1.195154b -18.79598%
FY Profit Before Tax 3.151188b versus 2.693303b +17.0008%
FY Profit After Tax 2.502817b versus 2.284501b +9.5563%
FY Earnings Per Share 38 versus 35 +8.571%
Final Dividend 6 shillings a share [They paid a 1/= Interim] making it
a 7/= Total Pay Out

Conclusions


Its a very solid Business with a very ''rich'' Balance Sheet.
Certainly we have seen a number of more recent and more aggressive
Players and I expect the competitor Threat to expand with Banks
setting up Insurance Arms in the near term.
Price has headroom up to 380.00 over the next 6 months

read more


Kakuzi reports FY 2013 PAT -56.479% Earnings here +26.315% in 2014
Kenyan Economy


Par Value:                  5/-
Closing Price:           120.00
Total Shares Issued:          19600000.00
Market Capitalization:        2,352,000,000
EPS:             8.42
PE:                 14.252

Full Year Results through 31st Dec 2013 versus through 31st Dec 2012

FY Sales 1.384375b versus 1.564792b
FY Profit before Fair Value gain in biological assets, sales of shares
in subsidiary and income tax 142.989m versus 362.364m
FY Fair Value Gain in biological assets 96.317m versus 63.686m
A Full Year Profit via a sale of shares in a subsidiary worth 53.249m
was not repeated
FY Profit Before Tax 239.306m versus 479.299m -50.07%
FY Profit After Tax 176.303m versus 405.104m -56.749%
FY EPS 8.42 versus 19.35 -56.485%
FY Dividend 3.75 shillings a share worth 3.125% of Yield

Company Commentary


''The major impact on profit arises from our Avocado and Tea
Operations both which are significantly down on turnover and Profit
compared to 2012''

Conclusions


Earnings were soft and correlated to lower Tea Prices through 2013.
I expect a good rebound in Earnings in 2014.
And finally Kakuzi is improving its dividend Pay Out Ratio to 44.53%
of Earnings and the Pay Out Ratio has been a Big Issue for
Shareholders.
Consider that the NAV is a multiple of the share Price because of the
Land value being carried at cost on the Balance Sheet.

Kenya Shilling versus The Dollar Live ForexPros 86.394

http://j.mp/5jDOot

Nairobi All Share Bloomberg +5.67% 2014 [0.587% below a Record closing High]

http://www.BLOOMBERG.COM/quote/NSEASI:IND

Nairobi ^NSE20 Bloomberg +0.37% 2014

http://j.mp/ajuMHJ

4,936.80 +8.06 +0.16%

Every Listed Share can be interrogated here

http://www.rich.co.ke/rcdata/nsestocks.php

read more



 
 
N.S.E Today


The Official Closing Data has not been released as i file this report.
The Nairobi Securities Exchange traded strong with Turnover of 814.094m
Safaricom +1.626% today and +15.207% in 2014, COOP Bank +15.49% in
2014 and East African Portland +44.92% in 2014 set Life Time Highs.



N.S.E Equities - Agricultural


Kakuzi corrected 6.66% lower to close at 112.00 and traded 800 shares
the day after releasing FY 2013 Earnings where FY Profit Before Tax
declined -50.07% to 239.306m. Tea prices were very soft through 2013
and evidently this was reflected in the results. Kakuzi remains
+17.89% in 2014 and has hiked the Dividend Pay Out Ratio to 44.53% of
Earnings per share. Kakuzi's Net Asset Value is a Multiple of the
share price and this is a generic situation. Interestingly, The
Bidding War for Rea Vipingo has improved Price Discovery for this
sector and there is plenty of share price headroom across the
Agricultural Sector at the Nairobi Securities Exchange.

Eaagads rallied 4.27% to set a Fresh 52 week closing High of 30.50.
Eaagads has spiked +28.42% this year and is following in the slip
stream of a blistering rally in Coffee Futures in 2014.



N.S.E Equities - Commercial & Services


Nation Media released FY 2013 Earnings today and reported a 2.4
percent rise in its FY pretax profit to 3.59 billion shillings and
maintained the Dividend at 10 shillings and unchanged. I will look
through the results overnight but at first glance that looks like a
significant H2 Stepdown. Nation Media accelerated H1 Profit Before Tax
+17.507%. Nation Media eased 0.808% to close at 323.00 but traded
shares at session lows of 315.00 -3.08% at the close confirming the
market sees these Results as a Miss. Nation Media is +2.86% in 2014.

Safaricom rallied 1.626% to close at a Fresh Record Closing High of
12.50 and on heavy volume of 27.55m shares worth 344.350m. Safaricom
traded 42.29% of the Volume at the Exchange today. Safaricom is
+15.207% in 2014 and my 13.50 Price Objective is very much in sight.

Safaricom is +15.207% in 2014 and has closed at a record share data here
http://www.rich.co.ke/rcdata/company.php?i=NTU%3D

Man of the moment @BobCollymore @Safaricomltd 134 days ago
http://www.twitpic.com/dk3ujz

Kenya Airways rallied +2.8571% to close at 12.60 and was trading at
12.80 +4.49% at the Finale. Kenya Airways traded 337,700 shares and
There was an 87 versus 25 Buyers versus Sellers Imbalance at the
Closing Bell. Kenya Airways has bounced sharply and 10.04% over the
last 5 trading sessions. Key Chart Resistance is at 14.50 and we have
momentum now that will carry us there.

Scangroup closed unchanged at 50.00 on solid volume of 942,200 shares
worth 47.107m. Scangroup is +3.62% in 2014 and the Price has further
headroom. The @WPP Network Effect I feel has not been properly baked
into the Price.



N.S.E Equities - Finance & Investment


COOP Bank firmed 1.23% to close at 20.50 and the highest level on a
Closing Basis since the stock began trading in December 2008. COOP
Bank has rallied +7.32% over 2 sessions and since releasing its FY
2013 Earnings, where FY Profit After Tax accelerated +17.922%. It is
the announcement that COOP Bank would offer 1 Bonus Share for every
six held which popped the price +7.32% over the last 2 sessions. COOP
Bank traded 3.708m shares worth 76.029m and is +15.49% in 2014.

COOP Bank Kenya share data and FY 2013 Earnings release here share
price +15.49% 2014 at a Life Time High

http://www.rich.co.ke/rcdata/company.php?i=NTY%3D

Kenya Commercial Bank traded 2nd at the Exchange and closed unchanged
at 46.50 and traded 2.801m shares worth 130.642m. Kenya Commercial
Bank has rallied more than 6% since releasing its Full Year 2013
Earnings where Profit After Tax expanded +17.517%. Kenya Commercial
Bank was trading at 47.00 +1.08% at the Finale.
Equity Bank which had retreated 8.088% this week and on some
aggressive selling steadied today and firmed 0.8% to close at 31.50
and traded 1.419m shares. Buyers outpaced Sellers by a Ratio of 2
versus 1 which affirms todays better price action.

Jubilee Insurance retreated 3.4375% to close at 309.00 and traded
7,800 shares the day after releasing FY 2013 Earnings where FY Profit
After Tax expanded +9.5563% to 2.502817b,  FY Earnings Per Share
increased +8.571% to 38 shillings a share and Jubilee is set to pay a
Final Dividend of 6 shillings a share and that makes it a Total Pay
Out of 7 shillings a share. Jubilee had rallied 14.285% in 2014
through this morning and these results look as if they undershot
market expectations. Jubilee has a strong Balance Sheet but I sense
the Competitor Landscape looks a lot less benign.



N.S.E Equities - Industrial & Allied


EABL rebounded +1.57% to close at 259.00 and traded 199,800 shares
worth 51.809m. EABL has rallied 18.26% since closing at a 52 week low
on the 19th of February last month. EABL has caught its breath after a
very sharp Run Up and points towards 275.00.

East African Portland Cement rallied 2.56% to close at a life time
High of 100.00 and traded 42,700 shares. EA Portland is +44.92% in
2013 in a rally that has gained Traction in March.

Mumias Sugar rallied +3.03% to close at 3.40 and traded 1.039m shares.
Buyers outpaced Sellers by a Ratio of 4 to 1 signalling the Base is
in.

Sameer spiked 5.303% higher to close at 6.95 and traded 35,500 shares.
Sameer is +34.95% in 2014.



by Aly Khan Satchu (www.rich.co.ke)
 
 
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March 2014
 
 
 
 
 
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