|Monday 20th of December 2010
www.rich.co.ke Register and its all Free.
If you are tracking the NSE Do it via RICHLIVE and use Mozilla Firefox
as your Browser.
0930-1500 KENYA TIME
Normal Board - The Whole shebang
Prompt Board Next day settlement
Expert Board All you need re an Individual stock.
The Latest Daily PodCast can be found here
Economic Impact #Kenya Officials linked to Post-election Violence #CNBC
We pottered around the Animal Orphanage Sunday. And Our Guide was this
Young Fellow who wove the most wonderful Stories around each Animal.
They all have human Names and it was all very enthralling.
The Animal Orphanage #Nairobi An Elephant Skull Twitpic
Hafiz The Night is dark the Waves rise Mountains high And such a storm
is raging http://www.rich.co.ke What do those upon the Shore know.
Firing Drill Increases Tensions in Korea WSJ
Law & Politics
SEOUL—South Korea on Monday morning prepared to test artillery from an
island North Korea attacked last month, and ordered residents into
bomb shelters in case the North carried out on threats to open fire at
the drill.North Korea on Friday and Saturday issued several statements
that said it would lash out at South Korea if it again tested
artillery on Yeonpyeong.
The United Nations Security Council, meeting Sunday in New York,
didn't agree on a statement to defuse the dispute. China blocked a
statement that would have blamed North Korea for the attack on
Yeonpyeong Island last month that set off the current crisis.
The Security Council met at Russia's request, underscoring pressure on
South Korea from both Moscow and Beijing to cancel the test.
The Hermit Kingdom The Star
"Time has come for us to revenge." President Mugabe Aljazeera
Law & Politics
Zimbabwe's president has threatened to nationalise British and
US-owned businesses operating in the country if economic sanctions
imposed on his political party are not lifted.
Robert Mugabe told his ZANU-PF party members at a convention in the
eastern city of Mutare on Friday that the time has come to implement
programmes to fight travel and financial bans imposed on party
Under empowerment laws, black Zimbabweans are slated to acquire 51 per
cent of all businesses. In a live broadcast on state television,
Mugabe warned UK and US firms that "unless you remove sanctions, we
will take 100 per cent".
"Why should we continue having companies and organisations that are
supported by Britain and America without hitting back?" he said.
"Time has come for us to revenge."
Paulson Plays Chicken Bloomberg
Law & Politics
“Mr. President, we’re going to move quickly and take them by
surprise,” the U.S. Treasury secretary told George W. Bush. “The first
sound they’ll hear is their heads hitting the floor.”
“The depression,” he writes, “was an exceptionally disagreeable experience.”
South Korea Imposes Bank Levy to Reduce Volatility Bloomberg
South Korea aims to apply a levy on banks’ foreign-exchange borrowings
and will also consider tighter rules on derivatives to prevent sudden
The toll will be imposed on non-deposit foreign-currency liabilities
held by all domestic and foreign banks, according to a joint statement
released yesterday by the Ministry of Strategy and Finance, the Bank
of Korea and the Financial Supervisory Service. The government is
considering a 20 basis-point levy on debt maturing in less than one
year, subject to change after further consultation, Vice Finance
Minister Yim Jong Yong said yesterday. A basis point is 0.01
The won fell 1.2 percent to 1,166.50 per dollar at the 9 a.m. opening
in Seoul, according to data compiled by Bloomberg. The benchmark Kospi
stock index dropped 0.9 percent to 2,008.14. South Korea’s three-year
bond futures were little changed, while contracts for December
delivery were little changed at 112.15 as of 9:03 a.m. in Seoul,
according to prices from the Korea Exchange.
“We wanted to regulate systemic risk from excessive capital inflows
and outflows, and we decided implementation of a bank levy would be
good to reduce volatility,” Yim said at a press conference in Seoul
after the measure was announced. It will be proposed to the National
Assembly in February, and will take effect after July 1 if approved,
They are introducing a Toll Charge on Exit. Its actually nuanced and
Clever. They were effectively put on Notice via that Deutsche Bank
Hong Kong Sale of KOSPI shares minutes before the Close.
Currency Markets at a Glance WSJ
Dollar Index 80.36
South Korean Won 1162.10 - 20 Basis Point Levy refers
India Rupee 45.498
The dollar ticked up against the euro and several rivals, with
Europe’s sovereign debt woes and heightened tension on the Korean
peninsular depressing investor appetite for risk-taking.
The strategists added: “another blow to the euro came with Moody’s
five notch downgrade of Ireland’s credit ratings, surprising because
of its severity rather than the downgrade itself.”
Geopolitical tensions from the Korean region have popped up again this morning.
Dollar versus South Korean Won Live ForexPros 1166.10 last +13.3
The Most Honest Barometer of Korean Geopolitical Risk Levels.
Commodity Markets At A Glance WSJ
Soft Commodities at a Glance Sugar and Coffee at records
Coffee Dec 2010 INO 225.25 +9.80 (+4.34%)
Last Price 225.25
Contract High 226.15 Contract High Date 2010-12-17
Contract Low 123.95
First Delivery 2010-12-30
There is a Genuine Disequilibrium with Supply and Inventories lagging Demand.
Sugar March 2011 INO 32.50 +1.82 (+5.54%)
Last Price 32.50
Open Int. 238975
Contract High 33.39 Contract High Date 2010-11-11
Contract Low 11.9
First Delivery 2011-05-15
The BreakFast Commodity Index refers.
Euro-zone troubles a ‘wake up call’ for Africa Marketwatch
World Of Finance
For many years, the legacy of the colonial past and their own
exemplary economic performance after the Second World War gave the
Europeans cult status in money matters across Africa.
Now, with the strains of the “one size fits all” monetary policy
gnawing away at the entrails of economic and monetary union (EMU),
could all this be about to change? Quite a turnaround here. A
continent that for decades has been a byword for grandiose economic
mismanagement is now starting to ask whether Europe’s governance
problems make it the right model to follow.
Currency Unions I would have thought are off the Table now.
UN troops ordered to leave Ivory Coast The Guardian
Law & Politics
United Nations peacekeepers and French soldiers stationed in the Ivory
Coast were today set on a dangerous course of confrontation with
forces loyal to the renegade president, Laurent Gbagbo, after he
ordered them out of the country.
The UN secretary general, Ban Ki-moon, responded swiftly with a
warning that violence against the 10,000-strong mission would incur
serious consequences. "Any attack on UN forces will be an attack on
the international community and those responsible for these actions
will be held accountable," Ban said.
His warning came as Britons were advised by the Foreign Office to
leave the west African country. "In view of the tense and highly
uncertain security environment following the disputed presidential
election … we advise against all travel to Côte d'Ivoire," the FCO
stated on its website. "Due to the threat of widespread instability
and violence in Abidjan and other major cities, British nationals are
advised to leave Côte d'Ivoire by commercial means, if safe to do so,
unless you have a pressing reason to remain."
No One is apparently giving any Quarter.
WikiLeaks cables: Sudanese president 'stashed $9bn in UK banks' The Guardian
Law & Politics
Omar al-Bashir, the Sudanese president, has siphoned as much as $9bn
out of his impoverished country, and much of it may be stashed in
London banks, according to secret US diplomatic cables that recount
conversations with the chief prosecutor of the international criminal
Some of the funds may be held by the part-nationalised Lloyds Banking
Group, according to prosecutor, Luis Moreno-Ocampo, who told US
officials it was time to go public with the scale of Bashir's theft in
order to turn Sudanese public opinion against him.
"Ocampo suggested if Bashir's stash of money were disclosed (he put
the figure at $9bn), it would change Sudanese public opinion from him
being a 'crusader' to that of a thief," one report by a senior US
official states. "Ocampo reported Lloyds bank in London may be holding
or knowledgeable of the whereabouts of his money," the cable says.
"Ocampo suggested exposing Bashir had illegal accounts would be enough
to turn the Sudanese against him."
If Ocampo's claim about Bashir's fortune is correct, Sudanese funds
being held in London banks amount to one tenth of annual GDP in Sudan,
which ranks fifteenth from bottom in the UN's index of the world's
poorest countries. Ocampo discussed evidence of the stash with the
Americans just days after issuing an arrest warrant for the Sudanese
president in March 2009, the first issued by the court against a
serving head of state. Bashir was indicted for seven counts of war
crimes and crimes against humanity last year with a further three
counts of genocide added in July. Ocampo, who has never released
details of the alleged funds, was severely criticised for the
indictment by many in Sudan and internationally amid criticisms the
move would inflame fighting in the southern Darfur region.
Despite the humanitarian crisis in Sudan, Bashir has remained popular
among many others in the country, particularly those who have
benefited from the oil boom brought about during his presidency. A
spokesperson for the Sudanese government dismissed the claim,
describing it as further evidence of the ICC's political agenda in
discrediting the Sudanese government.
"To claim that the president can control the treasury and take money
to put into his own accounts is ludicrous – it is a laughable claim by
the ICC prosecutor," said Dr Khalid al-Mubarak, government
spokesperson at the Sudanese embassy in London. "Ocampo is a maverick,
and this is just part of his political agenda. He has failed miserably
in all his cases and has refused to investigate Iraq or Gaza – he
needs success and he has targeted Bashir to increase his own
"Attempts to smear not only Bashir but Sudan as a whole are well
known, and are clearly linked with anti-Arab sentiments and
Islamophobia," Mubarak added.
But experts said that if confirmed, the funds could have big
implications for victims of human rights abuses in the county. Richard
Dicker, head of international justice at Human Rights Watch, said: "If
Bashir were to be tried and convicted, these funds could not just be
frozen, but used as a source of reparations for victims … [of]
horrific crimes in Darfur."
Robert Palmer, a campaigner at anti-corruption organisation Global
Witness, said: "$9bn may sound like an inconceivably large amount of
money for the president of Sudan to control. But we have uncovered
evidence of substantial funds being held in a European bank by an
oil-rich country in the past, where the head of state had a worrying
level of personal control over the funds. In Sudan's case, the figure
is almost the same amount as has been transferred from north to south
Sudan under the oil revenue sharing part of the comprehensive peace
agreement since 2005."
In a remarkable series of exchanges, the cables also reveal how
Sudan's mineral wealth had a direct bearing on the ICC proceedings
against Bashir, as China balked at action against him that could harm
its interests in the oil industry. "Ocampo said China, as long as it
continues to have oil concessions in Sudan, does not care what happens
to Bashir," one cable states.
In another cable dated March 2008, a senior French official noted
"growing Chinese concern about possible north-south fissures in Sudan
and the possibility that its oil interests could be threatened".
"The Chinese were beginning to see more clearly that Sudan's behaviour
towards Darfur and Chad could only increase the possibility of a
north-south rupture will a possibly severe effect on China's stake in
the oil sector,' the French are reported to have said.
In return, the Chinese expressed "puzzlement" that the French – a
member of the ICC and able to influence the deferral of proceedings
against Bashir – supported Ocampo's decision to pursue the Sudanese
president, given France's oil interests in the region. "[The Chinese]
observed French companies have oil interests in Sudan as well as
Chad," the Americans stated.
France ultimately supported Bashir's indictment, but the cables
suggest this was deliberately calculated to protect their oil
interests. The French told the Americans they believed that firm
action on Darfur was the only way to protect oil interests.
Both French firm Total and China, through affiliates of its
state-owned China Petroleum and Chemical Corporation, have substantial
oil concessions in Sudan, which currently produces 500,000 barrels of
crude oil per day .
"It is ironic that China, which postures as a friend of the people's
in the developing world couldn't give a damn about the suffering of
hundreds of thousands of African victims in Darfur," said Dicker. "I'm
not surprised that China is putting its oil interests above the
interests of humanity in seeing that these crimes of enormous concern
are adjudicated, but I think it will rebound to China's discredit,"
Dicker added.Speculation that Bashir may have deposited billions in
oil money in foreign accounts is likely to add to demands for his
arrest and transparency in Sudan's oil sector."The arm of the law,
when it comes to this type of crime, committed by or alleged to have
been committed by heads of state or heads of government, has gotten
longer," said Dicker. "There is a long road to trial in The Hague, but
what's striking is a number of other heads of state and heads of
government have wound up in court much to their surprise through often
lengthy and circuitous pathways."
Gives a whole lot more perspective to Ocampo-
#Juba Airport Yesterday #Sudan President Omar Bashir's Plane Aly-Khan Twitpic
High Noon for Kenya's political elite? East African
Law & Politics
One eminent scholar, for example, characterised the African state as
“suspended in midair above society.” Ethnicity and patronage provided
the tethers preventing these “states” from drifting away; donor
funding and blackmarket economies acted as vital conduits allowing
them to remain afloat.
Such aerial governments provided a safe haven for the political elite.
After successfully scaling the tethers to a position on high, all one
had to do was play by the “rules.”
Actions threatening to make the edifice come crashing down, in
contrast, invariably saw defectors from the status quo ejected from
the island of sovereignty in the sky — albeit offenders usually
received a small parachute to slow the fall from grace.
NIC Bank acquires Savings and Finance, invests $6m in SMEs East African
N.S.E Equities - Finance & Investment
Small and medium entrepreneurs (SMEs) in Tanzania are set to benefit
from a $6 million investment by Kenya-based NIC Bank.The bank, which
has acquired Savings and Finance, Tanzania, will invest in businesses
in Dar es Salaam, Arusha and Mwanza.The NIC Bank Group, which was
listed at the Nairobi Stock of Exchange in 1971, has approximately
22,000 shareholders and has acquired 51 per cent majority stake in
James Muchiri, the managing director and chief executive officer of
NIC in Tanzania told The EastAfrican that the acquisition and
rebranding of the Tanzania bank is a strategic expansion move by NIC
to reach financial markets outside Kenya.Mr Muchiri said the central
bank, Bank of Tanzania (BoT) has approved the takeover and change of
name to NIC Tanzania.
NIC Bank share price data 3rd Quarter Results www.rich.co.ke
Par Value: 5/-
Closing Price: 47.50
Total Shares Issued: 358,997,792
Market Capitalization: 17,052M
#Mindspeak with GMELTDOWN
On the Saturday of December 4th 2010, I fought my way out of bed to
make it on time for Mindspeak with Robert (Bob) William Collymore. Bob
has been Safaricom’s Chief Executive Officer from October 2010 and
many Kenyans were curious to hear ‘anything’ from him at the
increasingly popular event. Mindspeak is an event organized monthly
on Saturday mornings by Mr. Aly Khan Satchu (Chief Executive Officer
of Rich.co.ke). The venue for the event is usually at the Nu Metro
cinema, Westgate Mall in Nairobi’s Westlands area. The MindSpeak
happened only two months after another insightful event I wrote about
on ‘Reflections with Michael Joseph of Safaricom’ at the iHub Nairobi.
A number of bloggers including James Murua , Tovuti Sanifu and
UjenziBora have chronicled their observations at the MindSpeak event
with Bob Collymore. A lot of the attendants were also tweeting the
event live and their live feed was captured by afrinnovator using
CoveritLive.com’s nifty tool. Mr. Aly Khan Satchu has also released a
set of videos on the event in his Rich TV series. On this event,
although over two weeks have passed and much has been documented, I
still have a number of sticky thoughts to share. In this post I wish
to hopefully enrich our view of Safaricom from my observations at the
I have previously observed that the stiff competition among our four
Mobile Network Operators (MNOs) will be won through presentation of
genuine value propositions to the citizenry. Product attributes aside,
it is the sheer appearance at MindSpeak by Bob that struck me as
Safaricom’s marketing savvy that Yu, Orange, and Airtel Kenya are yet
to cath up with. Marketers have this argument that as competition
increases it becomes increasingly difficult to distinguish a product
using traditional attributes such as price, quality and functionality.
Perception management then becomes the other strategy to snatch extra
points from the competition.
MindSpeak has this niche audience that has significant influence over
Kenya’s increasingly important generation of young professionals and
students. In the few MindSpeak events I have attended, I could not
help but watch the speakers gleefully attempt to persuade the audience
about their most intimately held sentiments. The persuasion efforts
were all in acknowledgement of the potential influence of the audience
particularly through blogs, twitter and social media in general.
#Mindspeak 2010 Sessions Here
|The NSE20 bounced 38.41 points to close at 4364.49.
The All Share dipped 0.13 points to close at 96.55.
Market cap was 1.151821 Trillion versus 1.153398 Trillion.
Equity Turnover was 302.119m versus 482.85m last Time.
Safaricom traded a Big Slug of 23.416m shares and was the most active
Counter as Buyers continue to support these Levels.
KenGen bounced 2.67% on good volume.
The Bourse has taken the Ocampo Announcement in its Stride.
N.S.E Equities - Agricultural
Sasini Tea and Coffee [Coffee has hit Multi Year Highs in the last 2
Sessions] eased 5 cents to close at 12.95 and trades on a PE of 3.011
having reported a Full Year EPS of 4 shillings 30 cents.
Kakuzi firmed 3.75% to close at 83.00 and traded 1,000 shares.
Rea Vipingo traded 1,000 shares at 16.50 +6.45%.
N.S.E Equities - Commercial & Services
shares volume 23,416,000
total turnover 109,882,984
avg price 4.69 CLOSING PRICE 4.65 -1.06%
high price 4.75
low price 4.60
last price 4.65
Safaricom was the most active share at the Bourse. Safaricom eased
1.06% to close at 4.65 [Its Average was 4.69] and traded 23.416m
shares worth 109.882m which was 36.37% of the Total Volume Traded
today. Safaricom trades on 12.23 Trailing Price Earnings Multiple and
Buyers are happy to absorb Stock in what remains an 'oversold' Price.
Safaricom share price data 1st Half Results Analysis here www.rich.co.ke
Par Value: 0.05/-
Closing Price: 4.70
Total Shares Issued: 40,000,000,000
Market Capitalization: 188,000M
Swot Analysis Key Highlights 6 months to 30 Sep 2010 versus to 30 Sep 2009
EPS 0.193 versus 0.168 +14.9%
Revenue 47.111850b versus 40.660829b +15.9%
PAT 7.630591b versus 6.631898b +15.1%
CAPEX was 10.1b
Customer Market share 76.7% from 78.3 -> Note Well They lost only 1.6%
Data Revenue as a Percentage of Total Revenue 23.8% versus 17.7% in Sep 2009
Blended ARPU 456.6 versus 466 previous Kenya Data 3.61m #Data Users 9%
of #Kenya Population
Access Kenya retreated a further 3.32% to close at 13.10 which is a 3
and half Year Closing Low. Access Kenya released a Profits Warning
last Friday and traded 114,400 shares. Access Kenya is down 34.184%
over 1 Year.
Access Kenya Profits Warning share price data www.rich.co.ke
Par Value: 1/-
Closing Price: 13.55
Total Shares Issued: 207,227,120
Market Capitalization: 2,808M
ScanGroup was unchanged at 60.00 and traded 111,800 shares. ScanGroup
has posted a 131.447% 1 Year Return and 21.05% off its All Time
Closing High of 76.00 dated 7th October.
ScanGroup share price data www.rich.co.ke
Kenya Airways was unchanged at 45.25 and traded 39,600 shares.
Nation rallied 1.94% to close at 157.00 on light trading of 2,300 shares.
Standard traded 700 shares and was unchanged at 43.50.
TPS Serena was unchanged at 68.00 and traded 18,200 shares.
CMC Holdings improved 5 cents to close at 12.25 and traded 14,400 shares.
CarGen did not trade.
N.S.E Equities - Finance & Investment
Housing Finance HFCK traded 4th at the Nairobi Stock Exchange today.
HFCK eased 1% to close at 24.75. HFCK traded 742,600 shares worth
18.398m. HFCK has retreated from 2010 Highs just over 30.00.
HFCK share price data www.rich.co.ke
Barclays Bank rallied 3.5398% to close at 58.50 and traded 101,100
shares. Barclays Bank was reported as taking a Knife to Costs, By
StanChart rallied 1.632% to close at 249.00 with 7,500 shares traded.
KCB eased 1.13% to close at 21.75 and traded light Volume of 222,800
shares. KCB has a Forward PE of less than 8.00.
Equity Bank eased 0.99% to close at 25.00 and traded 459,000 shares.
COOP Bank firmed 5 cents to close at 18.95 with 531,600 shares traded.
NBK bounced 2.631% to close at 39.00 and traded some 288,000 shares.
CFC StanBic traded 3,600 shares and eased a shilling to close at 72.50.
DTB traded 2,900 shares and eased a shilling to close at 130.00.
NIC was unchanged at 47.50 and traded 18,400 shares.
Centum retreated 1.12% to close at 22.00 and traded 91,800 shares. The
Price looks at the KPLC Rights Issue in the Near Term. Equity Bank and
Centum have underwritten 50% of the Kenya Power Rights Issue.
Kenya Re Firmed 5 cents to close at 10.95 and traded 65,400 shares.
Jubilee was unchanged at 181.00 and traded 18,400 shares.
PanAfric did not trade.
Olympia Capital was unchanged at 6.00.
N.S.E Equities - Industrial & Allied
KenGen traded 2nd at the Bourse. KenGen traded 2nd at the Bourse.
KenGen rallied 2.67% to close at 17.30. KenGen traded a 17.00-17.50
range and 2.326m shares worth 40.300m. KenGen has posted a 46.95% 1
Year Return and trades on a 19.438 Trailing PE, but the last Full Year
Results were viciously crimped by the Drought and less than optimal
KenGen share price data www.rich.co.ke
Par Value: 2.50/-
Closing Price: 16.85
Total Shares Issued: 2,198,361,344
Market Capitalization: 37,042M
KPLC eased 1.12% to close at 22.00 and traded a 22.50 session High and
555,000 shares worth 12.330m. The Rights Issue will be a Good Pointer
re Liquidity at the Nairobi Bourse. Its not a Small Call.
Cables closed at 15.75 and traded 11,800 shares.
Bamburi Cement traded 3rd. Bamburi Cement firmed 1.03% to close at
196.00. Bamburi Cement traded 128,000 shares worth 25.178m. Bamburi
Cement has posted a 32.07% 1 Year Return and trades on a Trailing PE
Athi River Mining firmed 1.16% to close at 174.00 and traded a
173.00-175.00 range and 99,600 shares worth 17.42m which made it the
5th most actively traded share at the Bourse. ARM has delivered ab
84.39% 1 Year Return and Buyers continue to pick up Good Lines of
Stock at these Levels. The Share Register is well worthy of a Read.
Portland traded 400 shares at 85.00 -5.56%.
Mumias Sugar [Raw Sugar Prices have crossed 32.50 and this Level is a
Multi Year High] eased 0.515% to close at 9.65 and traded 650,100
shares. Mumias Sugar trades on a Trailing PE of 9.238 and has diverged
considerably from the Underlying Sugar Price Trend.
Mumias Sugar share price data www.rich.co.ke
Crown Berger snapped back 8.13% higher to close at 33.25 and traded
KenolKobil was unchanged at 9.60 and traded 32,200 shares.
Total traded 31,000 shares and closed at 28.00.
EABL was marked down 1.9% to close at 207.00 and traded 3,800 shares.
Unga fell 5.022% to close at 10.40 and traded 76,700 shares.
Sameer retreated 5.44% to close at 6.95 and traded 64,800 shares.
Eveready was unchanged at 2.90 and traded 12,300 shares.
Carbacid was unchanged at 140.00 and traded 5,100 shares.
BOC Gases did not trade.
BAT did not trade.