Monday, August 07, 2006

Equity @ 158

The ceremony marking the listing of Equity Bank shares was broadcast live on Citizen TV this morning, followed by share trading.

The price moved up from 70 to 158 shillings in a single price setting deal of 1,000 shares. Like the day one price of Kengen (63/=), today will not be a good indicator of the true price of Equity shares.

some jobs that were advertised in the newspapers last week

Southern team coordinator at the British Council DFID schools partnership. Details at and D/L is August 18.

Sales manager at GE Security. D/L is 18 August.

- Bid manager
- Senior project manager
- Project manager
Apply to by 31 August.

Il-ngwesi lodge (Laikipia)
- lodge manager
- Chef
- Assistant chef
Apply to by August 31.

Institute for Education in Democracy
- Program officer research & dissemination
- Accountant
D/L is 15 August.

Inspectors (specialists) at Kenya Police
- Helicopter pilots
- Computer forensic experts
- Doctors
- Pathologists
- Lawyers
- Foresnsic analysts (chemists/biochemists) Go

- Civil & structural engineers
- Land surveyors
Apply to Commissioner of Police P O Box 30083-00100 by
25 August.

Senior corporate sales executive at Qatar
. Apply to
by 17 August.

General manager at Safari Lodges East Africa.
apply to

Roaming manager at Safaricom. D/L is 11 August.

Southern Credit Bank
- Credit manager
- Branch manager
- Account relationship officer
- Compliance officer
- Security officer
Apply to by August 18.

Business executives at the Standard Group.
Apply to the head of HR P O Box 30080 by 10 August.

Financial analyst at USAID Kenya. Apply to by 18 August.


sassy said...

The Equity Bank shares @ 158 is way it for real banks? Is there some info that the public still does not have or what is really going on- brokers hype?

Anonymous said...

It's irrational, how can it be priced similarly to KCB. OMG we sitting in a bubble!!!

Nelie said...

Equity opened at 100, closed at 170 but had traded at 182 earlier on. Grapevine has it that only one main buyer - Discount Securities.

bankelele said...

sassy: Someone trying to move the market on Day 1

Anonymous: Their NSE peers would be CFC, NIC and D-Trust

Nelie; Thanks for the tip.

mushenzi said...

just as anonymous says...we might be sitting on a time bomb. It might be prudent for us to understand the best point to get rid of your stocks to avoid burning your hard earned savings. It appears that some artificial market forces are in play on several counters in the NSE which is dangerous to uninformed investors.

Anonymous said...

I understand the reason for the high price is lack of liquidity ( the Kangema farmers have refused to put their shares into CDS accounts)
But the price is expected to correct itself downwards once enough shares are immobilized

Jakarumba said...

Skwota, do you mean Equity is like Limuru tea righ now?

Alibaba$tocks said...

Forces of supply and demand apply in any market. The market will be back tomorrow and you got a choice.

coldtusker said...

At 158/- the implied P/E (based on 1H 2006 results) is a MASSIVE 22x. That makes Equity the most expensive bank (except HFCK & NBK).

I expect the price to drop as current shareholders rush to immobilise shares to take in some of the gains!

Most of the counters are "bubbling" up! Just wait for the balloon to pop on many counters!

bankelele said...

69,000 shares traded - high of 180, low of 100! closes at 166

Kudrinketh said...

Of course the current price is unrealistic,just look at the volume of shares traded, a single investor coulda bought all that. So relax people,its a simple matter of supply/demand with a tinge of manipulation, probably to entice the farmers to immobilize their shares.

If you are long term on this one like I am, then you can wait as long as it takes to avoid being the fool who bought high and had to sell low. If the farmers refose to immobilize then I'll just wait for two years when i know some directors will be eager to get rid of their shares.

Meanwhile,get ready for real IPOs comming up like Kenya Re and let fools chase after Equity.

Anonymous said...

69,000 shares are too few for an opening day on a company that has about 45m shares free float excluding the directors....
It had two not one main buyer with discount being one of them, and one main seller. that price is coming down and if you have shares get out now and chill for the thing at below Kshs 100...NBK(National Bank of Kangema) is a bubble waiting to burst watch this space!

ChomChum said...

That is completely out of this world. Kenyans are known for that anyway. Same thing happened to KenGen and will happen to ScanGroup once the shares start trading.

Bankelele - I love your blogsite, but can you please change the colors? - thanks

MpendaPesa said...

Chomchum! What colors do you want bankelele to change. Nani, come here read, get enriched and be happy. Not everything will be customized to your needs. There are thousands of readers who pass by Bankelele's and you are the first one to complain about the colors. Go buy glasses or something. Anyway - leave some constructive comments.

Alibaba$tocks said...

Tongue in the chick...Learn to Learn, learn and re-learn.

Possible to go emotional with the stock market especially if you are outa game. Studies have shown stock exch. elicit mob psychology panic buying & selling as kenyan lynching mobs-dispense with fast or why the excesses. Ideal marts are utopia.

Alot at stake and can understand admonishing but not suitable to cast aspirations. We need to learn the ropes of capitalism and seek justice to redistribute our wealth to list a KMC alike from N.E.P

Alot of wealth stack up due to inaccessibility. How many peasants were aware about the listing? have access to info & daily news? or the requisite know how? Decolonise
& emulate to sow the seeds.

bankelele said...

Kudrinketh: Am happy new blood on the NSE, but these new Equity and Kengen 1st day prices (hyped by the media) are giving the public a wrong image of shares as easy money to be made.

Anonymous: All bank shares are apprecating this year, but NBK is a mystery

ChomChum: Went though all the blogger templates and I like the basic black and green. sorry

MpendaPesa: Thanks for the defence

Anonymous said...


Go wear green goggles or something!

Anonymous said...

actually, the black background is not very convenient for reading. i work with UI designers black background are hgenerally for entertainmnet sites.

but no beef

Jakarumba said...

ChomChum, you are as good as lost. Banks has everything righ. His blog is unique.

coldtusker said...

Chomchum - Hmmm... I won't blast you but Banks likes the colour scheme &, therefore, I can live with it!

Don't worry about the naysayers BUT the preferred comments on this blog are financial so please give us your opinions/comments...

Well, the price has started TUMBLING... from the 166/- & 158 it is down to 134/- on 10 Aug 2006...

Like anon skwota said... let's wait till its below 100/- (even then... it is prudent to wait).

Here is a tidbit the folks who bought during the private placement in Dec 2004 paid 22/- per share! So they are making HUGE gains if they sell now!

I wonder what SG will open at with the HUGE oversubscription BUT many of the applicants might be speculators thus will rush in to sell!


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