Friday, November 16, 2007

Financial Friday

Earlier results showed that tax collection is not profitable, but neither is dealing with the strong shilling.

The Central Bank of Kenya year ended June 2007 shows the bank recorded a 386 million shillings loss down from a 4.5 billion profit in 2006. This was largely due to a forex loss of lost 9.8 billion shillings as the shilling remained strong against the US dollar, Euro and Sterling pound.

How much currency is circulating in Kenya? 90 billion shillings ($1.34 billion), in currency up from 76 billion in June 2006.

Bank in law
You don’t start a marriage by locking out the in-laws, but that’s what’s happening with CFC Stanbic as CFC stockbrokers have suspended trades in Stanbic Uganda shares to clear up a backlog of orders.

Shares vs. Holiday vs. Election expenses
The much anticipated Safaricom IPO edges into danger zone as the IPO could be pushed back to start on December 10th, not the 3rd.

Hedge funds to Africa
There was the Equity - Helios deal announced this week.

Another prime opportunity would be for a hedge fund to invest in Transcentury

PSD blog puts the new investment interest in Africa in a historical perspective with China and other Asian countries recognizing an opportunity to stake out the long term

Hedge Funds a year ago


Dropmyload said...

A email from a stockagent doing the rounds that Safcom opens 10Dec closes 11 Jan.

Strange timing, don't you think?

This fast-tracking is getting a bit desperate, really, what bad timing, bang before the elections, holidays, school fees etc.

alexcia said...

Interesting on the kes
14/76%=10% increase in kes

alexcia said...

So the Monetary Base (MB)has increased 10% this year
To get the increase in Money Supply (MS) we multiply Monetary Base (MB) by the Money Multiplier (MM)
Runaway infation

xtracash said...

Always expected in Kenya during elections.Money stashed abroad coming back to finance elections.Don't blame it on the diaspora. That is part of Kibaki's "economic development". Come January and people will be holding money less worth a few years ago. No wonder the common mwananchi is yet to feel the economic boom. Part of it is a mirage.

chipukizi said...

It would be intersting to see how Merrill Lynch will handle the IPO foreign listing. As an interested party i hope that the minimum allocation is reasonable and achievable.

just what? said...

the monetary base has increased by 10% from a year ago,pushing up prices But how about from 2003?

what are the main drivers of this growth? tourism? remittances? less corruption? what?

bankelele said...

Dropmyload: seems strange, and odd to have it in holidays. But that could help since the obvious, massivre over-subscription will be lessend by other holiday bills.

alexcia: I wish I had the numbers for '04 to compare also> but money expansion is not necessarily inflation

xtracash: amount of money held localy is also quite substantial as you can see by real estate expansion

chipukizi: If the IPO is held next year (after elections, and without politics) they can probably make it more expensive, reflecting the true share price of the company

just what? I agree - growth, trade, tourism, remittances, and increased tax collection and government purchasing capacity


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