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Morning Africa |
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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
Saturday 28th May Mindspeak will be hosting the Central Bank Governor Patrick Njoroge |
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Finally got my copy of Roberto Bolano's 2666 Africa |
“People see what they want to see and what people want to see never has anything to do with the truth.” ― Roberto Bolaño, 2666
“Everything is a burned book, my dear maestro. Music, the tenth dimension, the fourth dimension, cradles, the production of bullets and rifles, Westerns: all burned books.” ― Roberto Bolaño, 2666
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Venezuelan government seizes control of factories as country risks economic 'explosion' Independent Law & Politics |
Venezuelan President Nicolas Maduro has threatened to seize factories that have ceased production and arrest their owners after extending emergency powers amid the country’s massive economic crisis.
Mr Maduro made his remarks Saturday, ordering “all actions to recover the production apparatus, which is being paralysed by the bourgeoisie.” He added that factory owners “sabotage the country” by halting production at their plants.
The Associated Press reports that Empresas Polar, the country’s largest food and drink distributor, closed its last beer plant, claiming that the company lacked the capital to purchase the raw materials necessary to continue production.
But Mr Madero sees the actions of Empresas Polar as a deliberate attempt to destabilise the economy.
The left-wing president accused Washington of plotting a coup against his administration - similar to the temporary ousting of then President Hugo Chavez in 2002.
“You can hear the ice cracking. You know there’s a crisis coming. Our pressure on this isn’t going to resolve this issue,” one official told reporters..
“This is really not the case that the US is rooting for any outcome other than there not be an economic meltdown or social violence,” another said. “There are reasons for concern that over the summer as Venezuela gives importance to payments on debt over imports that these events could spiral.”
Some activists, however, suggest that the US is fanning the flames that could lead to a coup.
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Venezuela opposition slams 'desperate' Maduro state of emergency Law & Politics |
Maduro on Friday night declared a 60-day state of emergency due to what he called plots from Venezuela and the United States to subvert him. He did not provide specifics.
The measure shows Maduro is panicking as a push for a recall referendum against him gains traction with tired, frustrated Venezuelans, opposition leaders said during a protest in Caracas.
"We're talking about a desperate president who is putting himself on the margin of legality and constitutionality," said Democratic Unity coalition leader Jesus Torrealba, adding Maduro was losing support within his own bloc.
"If this state of emergency is issued without consulting the National Assembly, we would technically be talking about a self-coup," he told hundreds of supporters who waved Venezuelan flags and chanted "he's going to fall."
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South Africa Presidency Denies Reports of Gordhan Arrest, Ouster @business Law & Politics |
The office of South Africa President Jacob Zuma denied that the finance minister would be arrested or replaced, refuting a Sunday Times report that said a special police unit has sent to prosecutors the docket of its probe into Pravin Gordhan.
The so-called Hawks police unit completed its investigation of Gordhan and eight other former officials over their alleged involvement in a special agency within the national revenue service, the Sunday Times reported. A prosecution may prompt Zuma to replace Gordhan, who ran the service until 2009, with Brian Molefe, chief executive officer of the state-owned utility Eskom Holdings SOC Ltd., the newspaper said, citing unidentified officials in the ruling African National Congress party.
Conclusions
I have a high regard for Brian Molefe [whom I met in Tanzania at January Makamba's Mindspeak] but ousting Gordhan, will be the straw that broke the Rand's back
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16-MAY-2016 :: The Geopolitics of Pipelines in East Africa @TheStarKenya Africa |
Given that Uganda’s decision to export its crude oil to world markets via the port of Tanga is now a ‘’done deal’’, it is worth analysing what has happened and appreciating that this is the equivalent of a blow to the solar plexus of our regional ambitions and that these ambitions are gasping for breath. Recall that Ethiopia has already dialled up the Djibouti route and that LAPPSET is in essence, a Kenyan-South Sudan gig and that South Sudan is back at around zero and is not in a position to finance its own recovery let alone a pipeline. If the reknowned short-seller Mr. Chanos could short LAPPSET, I am sure he would be limit short.
The widely read Africa Confidential said this: ‘’Uganda’s decision to export oil through Tanzania undermines Kenya’s status as regional kingpin’’. ‘’ The move alters the political balance of the whole region and has left Kenya with some catching up to do. The preferred route until the second half of last year, Kenya now has a considerably less viable oil field and a damaged reputation as the heartbeat of East African integration’’.
Chatham House in an earlier report said: ‘’Uganda’s foreign affairs minister also highlighted the issue of relative costs of the rival routes. Thee projected cost of the Tanzania route is approximately $4 billion, up to $1 billion less than going via Kenya. Kenya’s proposed tariff was almost $17 per barrel, compared to Tanzania’s $12 per barrel. Uganda’s energy minister has also reported that Tanzania has waived land fees, transit charges and taxes associated with the pipeline”.
When you look at the numbers, our pipeline build was 25 per cent more expensive and our price per barrel 29.411 per cent more costly, you realise that we were never in the pipeline game.
Frame the question as a national interest, one for Uganda and its a no-brainer. then you have to ask, where was our intelligence? How could we be so far away from the winning bid? When I worked in the city and missed a big trade, I would always call back and ask how far I had missed by. Differentials of 25 per cent and 29.411 per cent would be terminal to the relationship.
Tanzania’s president John Magafuli has shifted the centre of gravity for East African oil and gas, South, in one fell swoop.
In my humble opinion, Magafuli has moved with speed and precision and pared price of brokerage charges. He’s winning. Its time for some serious soul- searching folks.
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Nigeria's central bank denies report of planned devaluation Africa |
The news website SaharaReporters.com, which focuses on Nigerian politics, said President Muhammad Buhari had agreed to devalue the naira in exchange for funds from the International Monetary Funds (IMF) to help offset a slump in oil revenues.
The website is based in New York and founded by a Nigerian journalist. It seeks to the hold the government to account by encouraging tip-offs from sources and whistleblowers.
Quoting unnamed Buhari aides, it said the naira rate to the dollar could fall to 290, compared with 198 currently.
"The rumour that the naira is going to be devalued is false," said Isaac Okoroafor, a spokesman for the central bank.
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Africa Has More Large Businesses Than You Expect, McKinsey Says Africa |
McKinsey & Co. Inc. has identified 700 African companies with annual sales of more than $500 million, many of which are growing and reinvesting and are a reason for optimism about economic prospects on the continent, the consultancy’s global managing director said.
“That’s a lot more than most people would think,” Dominic Barton said Friday in an interview at the World Economic Forum on Africa in Rwanda’s capital, Kigali. “Two-thirds of them are private, that’s probably why we don’t know about them. And they’re growing.”
Of the companies identified with annual revenue larger than $500 million, 300 are in South Africa, 133 in North Africa, and 56 are in Nigeria, Barton said, citing McKinsey research for a report to be published in October.
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N.S.E Today |
The Nairobi All Share ticked -0.40 points lower to close at 146.31. The Nairobi NSE20 fell 20.60 points to close at 3907.09. Equity Turnover remained lackadaisical at 255.045m.
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N.S.E Equities - Commercial & Services |
Safaricom firmed +0.29% to close at a 4 week High of 17.35 and traded 3.338m shares. Safaricom is 0.5% below a 2016 Closing High and just 2.8% below an all time intra day high of 17.85. The FY Earnings Release was muscular and i expect Safaricom which is +6.44% will post a fresh record closing High, in due course.
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N.S.E Equities - Finance & Investment |
Kenya Commercial Bank ticked -0.6% easier to close at 41.50 and traded 332,700 shares. KCB is set to conduct a Rights Issue and this will cement their position at the Apex of the Tier 1 Bulge Bracket Banks. The News out of Chase on Friday [signalling most banking services were now being provided] also confirms KCB has moved the dial effectively and with despatch. Equity Bank eased back -0.6% to close at 40.00 and transacted 1.137m shares. I thought the Q1 2016 Earnings were ''shapely'' and deserving of a more positive price response.
CIC Insurance had a strong session rallying +4.807% to close at 5.45 and traded 96,700 shares. Todays Rally narrowed the Year to Date loss to -12.096%.
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N.S.E Equities - Industrial & Allied |
Carbacid rallied +1.01% to close at 15.00 and on heavy volume action of 3.067m shares [1.203% of the shares] worth 46.12m. Carbacid previously reported a 14% acceleration in H1 Turnover ''due to higher demand in local and export markets''
EABL closed unchanged at 297.00 and traded 68,500 shares. EABL is +8.79% in 2016 and I expect this out-performance to accelerate further through 2016.
KenGen eased -1.04% to close at 7.05 which is a 10 week closing Low. KenGen has retreated -11.875% since announcing a 2 for 1 share held rights Issue. My Calculation is that everything is baked into the price and the price correction has probably run its course.
Mumias Sugar firmed +1.6875% to close at 1.40. Raw Sugar Prices have been on a roll of late.
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