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Satchu's Rich Wrap-Up
 
 
Thursday 03rd of March 2016
 
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Africa

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Macro Thoughts

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01-FEB-2016 :: Currency Puzzles and Negative Interest Rates @TheStarKenya
Africa


Sitting here in Africa, it is rather difficult imagining a situation
where you get charged to deposit your money or where you might borrow
money from the bank and end up paying back less than the principal
amount borrowed. Bloomberg wrote: “crazy as it sounds, several of
Europe’s central banks have cut key interest rates below zero and kept
them there for more than a year.’’

Home Thoughts

“You know you're in love when you can't fall asleep because reality is
finally better than your dreams.” ― Dr. Seuss

“You have brains in your head. You have feet in your shoes. You can
steer yourself any direction you choose. You're on your own. And you
know what you know. And YOU are the one who'll decide where to go...”
― Dr. Seuss, Oh, The Places You'll Go!

read more



North Korea Fires Short-Range Projectiles After New UN Sanctions
Law & Politics


North Korea signaled its defiance over new United Nations sanctions to
curb its nuclear ambitions by test firing short-range projectiles in
waters off the divided peninsula.

The isolated nation fired a set of projectiles into its eastern waters
around 10 a.m. on Thursday in Seoul, about 10 hours after the UN
Security Council unanimously approved new sanctions to punish
Pyongyang for a nuclear test and rocket launch earlier this year.
South Korea’s Defense Ministry initially said North Korea had fired
missiles, later changing the language to projectiles.

 “There needs to be preparation for the possibility of North Korea
raising tensions extremely in protest of the UN Security Council
resolution.”

Conclusions

North Korea has one Ground Game and that Ground Game is BRINKMANSHIP.

read more






Currency Markets at a Glance WSJ
World Currencies


Euro 1.0858
Dollar Index 98.18
Japan Yen 114.14
Swiss Franc 0.9969
Pound 1.4081
Aussie 0.7313
India Rupee 67.372
South Korea Won 1226.73
Brazil Real 3.8942
Egypt Pound 7.8298
South Africa Rand 15.5526

Higher Beta Currencies have staged a recovery over the last few sessions

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Turkey's Erdogan offers to help West Africa fight terrorism
Africa


"Turkey has a vast experience in combating terrorism and we understand
those countries suffering at the hands of terrorism best," he said,
citing recent attacks by Islamic militants in Mali and Burkina Faso.

Conclusions

Erdogan's Terrorists are oftentimes other Folks Freedom Fighters

read more




Uganda and Tanzania are planning to build a pipeline from Ugandan oil fields to the Tanzanian coast in a move that could strike a blow to Kenyan pipeline plans.
Africa


Statements issued after Ugandan President Yoweri Museveni and his
Tanzanian counterpart John Magufuli met on Tuesday did not mention the
fate of the Kenyan oil export pipeline plan.

Uganda, which has yet to start oil production, raised the possibility
of a Tanzanian pipeline route last year.

France's Total, one of the oil firms developing Uganda's fields, had
raised security concerns about the Kenyan route. A Kenyan pipeline
could run near Somalia, from where militants have launched attacks on
Kenya.

But industry officials have also said connecting Kenyan fields, which
are also yet to start production, with those in Uganda would make the
pipeline project cheaper as costs would be shared.

"The two countries are planning to build an oil pipeline between Tanga
(in Tanzania) and Uganda covering a distance of 1,120 km," the Ugandan
presidency said in its statement. "Magufuli said this is projected to
employ 15,000 people."

Tanzania, which also has large offshore natural gas reserves, issued a
similar statement.

read more


Cote d’Ivoire revealed as top prospect for investors in Africa
Africa


Ethiopian Airlines and RwandAir craft new alliance: what are these
African 'developmental states' up to?

http://mgafrica.com/article/2016-03-01-development-state-backed-airlines-ethiopian-and-rwandair-lead-intra-african-trade-march-with-new-deal

The air tie-up between Ethiopia and Rwanda is intriguing. In late
January, a RwandAir delegation quietly visited the Ethiopian capital,
where they informed Ethiopian Airlines chiefs that they had settled on
their airline as their strategic partner.

RwandAir has been seeking a minority shareholder to anchor its growth,
in what has been a rapid expansion. Ethiopian was always a frontrunner
for the deal: it is both a technical and management partner to the
Kigali-based airline, while its former long-serving chief executive
Girma Wake heads the Rwandan carrier’s board, in addition to advising
the government in Kigali.

(Left to Right): Ghana Vice President Kwesi Amissah-Arthur,
Ethiopian PM Desalegn (2nd left), President Kagame (C) Mrs Jeannette
Kagame, and Azeb Mesfin Haile, former Ethiopian First Lady.
(Photo/PK/FB).

http://mgafrica.com/article/2016-03-01-development-state-backed-airlines-ethiopian-and-rwandair-lead-intra-african-trade-march-with-new-deal

Rand Daily Mail Gordhan: I will not resign, I have a job to do
#SarsWars #Gordhan

pic.twitter.com/CwEsJpBkqB

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Egypt Pound versus The Dollar 3 Month Chart INO
Africa


Egypt EGX30 Bloomberg -13.27% 2016

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

Nigeria All Share Bloomberg -11.33% 2016

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

25,396.83 +558.52 +2.25%

Ghana Stock Exchange Composite Index Bloomberg -1.21% 2016

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

read more


Possible debris from Malaysia flight MH370 found near Mozambique: NBC
Africa


The discovery of the 1-meter metal fragment on a beach in Mozambique
shows investigators are correct to focus their search area for MH370
in the southern Indian Ocean

http://www.bloomberg.com/news/articles/2016-03-02/possible-boeing-777-part-found-off-mozambique-nbc-reports

The discovery of the 1-meter metal fragment on a beach in Mozambique
shows investigators are correct to focus their search area for MH370
in the southern Indian Ocean, the Australian government said Thursday.

The discovery of a second piece in the same general area as the first
tends to confirm that searchers are looking for the plane in the right
place, an arc from west of Australia curving toward the South Pole,
according to John Cox, president of aviation consultant Safety
Operating Systems in Washington.

Local ecological association members and volunteers carry debris
found on France's Reunion Island, last August Getty Images

http://www.independent.co.uk/news/world/africa/mh370-search-investigators-confirm-debris-from-plane-but-say-they-are-still-no-nearer-to-discovering-a6907731.html

read more


Titanium miner Base Resources in Sh730m cash call to ease debt burden
Kenyan Economy


The company plans to raise Sh730 million (A$10 million) from the sale
of discounted shares to existing shareholders in the ratio of one
share for every three held.

“To provide continuity and certainty of funding and allow progression
of the strategic plan on a timeline to capitalise on window of
opportunity, additional funding at the corporate level is required. An
A$10 million entitlement offer is considered the most appropriate
solution,” said Base Resources in a statement.

It is offering one share for every 3.35 held at Sh4.4 (A$0.06) per share.

read more



CFC Stanbic Holdings reports FY PBT 2015 -4.426% Earnings here
Kenyan Economy


Par Value:                  5/-
Closing Price:           80.00
Total Shares Issued:          395321638.00
Market Capitalization:        31,625,731,040
EPS:             12.41
PE:                6.446

The Kenyan Banc assurance model includes CFC Bank, CFC Financial
Services and Heritage Assurance.

FY Loans and advances 128.163157b vs. 101.210110b +26.631%
FY Deposits and current accounts 153.670812b vs. 129.409143%
FY Total assets 208.451915b vs. 180.998985b +15.167%
FY Net interest income 9.303047b vs. 8.461945b +9.940%
FY Non interest revenue 7.641228b vs. 8.408553b -9.126%
FY Total income 16.944275b vs. 16.870498b +0.437%
FY Credit impairment changes [907.305m] vs. [702.822m] +29.095%
FY Operating expenses [8.677556b] vs. [8.467430b] +2.482%
FY Profit before taxation 7.359414b vs. 7.700246b -4.426%
FY Income tax expense [2.453680b] vs. [2.013585b] +21.856%
FY Profit for the year 4.905734b vs. 5.686661b -13.733%
FY Foreign currency translation differences for foreign operations
[1.029308b] vs. [0.061538b] +1,572.638%
FY Total comprehensive income for the year 3.807794b vs. 5.425163b -29. 812%
EPS 12.41 vs. 14.38 -13.700%
Final Dividend 5.40 Total Dividend per share 6.15 vs. 6.15
Cash and cash equivalents at 31st December 39.588922b vs. 22.610152b +75.094%

read more



CfC Stanbic Bank "All things considered, given challenges and environment, it was a good performance." C.E Philip Odera #CfCStanbic2016FYResults
Kenyan Economy


Conclusions


Its a cheap share on a P/E Basis. Expanded the Loan Book  +26.631% but
evidently took a hit in South Sudan [as so many companies have
apparently]

read more


Uchumi reports H1 Earnings here
Kenyan Economy


Par Value:                  5/-
Closing Price:           6.10
Total Shares Issued:          364959616.00
Market Capitalization:        2,226,253,658
EPS:             -10.85
PE:                 -0.562

One of the main Kenyan supermarket chains.

H1 Net sales 4.261303b vs. 6.828197b -37.593%
H1 Cost of sales [3.359750b] vs. [5.456403b] -38.426%
H1 Gross profit 0.901553b vs. 1.371794b -34.279%
H1 Other income 144.660m vs. 225.526m -35.857%
H1 Operating expenses [2.010976b] vs. [1.799676b] +11.741%
H1 Profit from operating activities [964.762m] vs. [202.356m]-376.765%
H1 Profit before taxation [1.017761b] vs. [0.262357b] -287.930%
EPS [2.79] vs. [0.72] -287.500%
No. of shares 365m vs. 265m
Cash and cash equivalents at the end of the period [640.088m] vs.
302.724m -311.443%

Conclusions

Outed Uganda and Tanzania during this reporting period.
The Path back to Profitability has been outlined.
That Plan needs Capital, however.

read more



NIC Bank reports FY 2015 EPS -0.99% Earnings here
Kenyan Economy


Par Value:                  5/-
Closing Price:           41.00
Total Shares Issued:          639945603.00
Market Capitalization:        26,237,769,723
EPS:             7.00
PE:               5.857

Well established Kenyan commercial bank.

NIC Bank FY 2015 through 31st December 2015 vs. 31st December 2014
FY Loans and advances to customers (net) 116.009302b vs. 102.042135b +13.688%
FY Customer deposits 112.364637b vs. 100.434954b +11.878%
FY Loans and advances income 13.958009b vs. 11.369024b +22.772%
FY Total interest income 17.014132b vs. 13.711068b +24.090%
FY Customers deposits expense [5.836296b] vs. [5.062509b] +15.285%
FY Total interest expense [7.271599b] vs. [5.712948b] +27.283%
FY Net interest income 9.742533b vs. 7.998120b +21.810%
FY Foreign exchange trading income 1.431231b vs. 1.142181b +25.307%
FY Fees and commissions on loans and advances 1.202807b vs. 1.073526b +12.043%
FY Total non interest income 4.032160b vs. 3.573179b +12.845%
FY Total operating income 13.774693b vs. 11.571299b +19.042%
FY Loan loss provision [1.652475b] vs. [0.329133b] +420.069%
FY Staff costs [2.816867b] vs. [2.340544b] +20.351%
FY Other operating expense [1.829898b] vs. [1.646230b] +11.157%
FY Total operating expense [7.377418b] vs. [5.340649b] +38.137%
FY Profit before tax and exceptional items 6.397275b vs. 6.230650b +2.674%
FY Profit after tax and exceptional items 4.485125b vs. 4.116674b +8.950%
FY Other comprehensive income for the year net of tax [658.528m] vs.
[36.820m] +1,688.506%
FY Total comprehensive income for the year 3.826597b vs. 4.079854b -6.208%
EPS 7.00 vs. 7.07 -0.990%
Final dividend per share 1.00 vs. 1.00
Gross non performing loans and advances 14.351893b vs. 6.899672b +108.008%
Total non performing loans and advances 13.228534b vs. 4.032008b +228.088%
Loan loss provision [2.776627b] vs. [2.680360b] +3.592%
Net non performing loans and advances 10.451907b vs. 1.351648b +673.271%

Conclusions

home market still accounted for 97.9 per cent of its net profit in the
review period.
Big Jump in Net Non-performing Loans
Tier 2 Banks also got crimped because of the Big Surge in Interest
rates in Q3/Q4 -

read more


NIC Bank Group managing director John Gachora. FILE | DIANA NGILA | NATION MEDIA GROUP
Kenyan Economy


“The bank rolled out an ambitious strategic plan in 2015, to target
more retail and SME business and we have started reaping the fruits of
our investments. Of our various business lines Retail Banking
experienced the biggest growth in profitability,” Mr Gachora said.

The bank attributed the slow rise in profitability to the increased
loan loss provisions which jumped four fold from Sh329 million to
Sh1.6 billion in the year.

read more







Home Afrika contracts Egyptian firm to build Sh3bn sports complex at Migaa
Kenyan Economy


Property developer Home Afrika has picked Egyptian company Wadi Degla
to build and manage a Sh3 billion sports complex at its 775-acre Migaa
gated golf community in Kiambu.

Managing director Dan Awendo says the Egyptian company’s local
subsidiary, Wadi Degla Kenya, has been contracted based on their
expertise in building sports complexes.

“At the moment there are no Kenyan companies that specialise in
developing clubs and they have immense experience in that industry,”
said Mr Awendo. This is the second sporting complex that the Egyptian
company is building in Kenya after the Premier Sporting and Social
Club located at Paradise Lost, off Kiambu road.

read more






 
 
by Aly Khan Satchu (www.rich.co.ke)
 
 
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March 2016
 
 
 
 
 
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