Tuesday, January 22, 2008

Kutwa Tuesday: Jan 22 Pot Pourri

All Safaricom: :
Good: An IPO from Safaricom could be the tonic that will restore investor confidence in Kenya that has been damaged the political events over the last month.
Good: Safarciom has partnered with Google to offer free email (6GB worth) to all their customers.
-but not good Have Safaricom raise their data costs? Internet browsing by phone seems to chew up airtime a lot faster these days

Air wars:
- Fly cheaper: Kenya Airways flights to Mombasa are now 3,000 shillings ($45) one way and 5,000 for roundtrips (plus tax) – about ½ of what they were a month ago
- There's a new airline on the Kisumu route, as another airline, Fly 540 has also acquired new aircraft to embark on flights to other regional African countries.

Mitigating political risks:
- There was notice in the paper by the Association of Kenya Insurers (AKI) confirming that political risks/riots are not covered in their policies. However ye members will discuss loss compensation on a case by case basis.
- But there’s a green light for some; Today’s Daily Nation has a (offline) story about the Africa Trade Insurance Agency - a World Bank subsidiary that covers political risks that has been largely dormant in Kenya until this month when corporates like Kenya Airways, Telkom and Nakumatt have been flocking to enquire about political risk cover. The story has an ominous warning that election violence could be an event that recurs every five years in Kenya in future.

Phantom exchange: Owing to a system hitch, there was no trading at the Nairobi Stock Exchange on Monday – though someone at the Standard says there were some trades. The exchange appears slightly inflated with all that’s going on around in the country.

Boycott averted: I was in the second week of my personal boycott of national broadcaster Kenya Broadcast Corporation (KBC) for shoddy programming and outright disservice to Kenyans in the post-election period. But they have won me back temporarily with their belated offer to broadcast soccer matches from the Africa Cup of Nations in Ghana. Having a variety of channels to watch is however a luxury that million in rural Kenya do not have as they only have the national broadcaster to tune to for news and entertainment.

Consult with Pricewaterhousecoopers: Kenya jobs include Transfer Pricing Manager, Consultant (Internal Audit) Senior Consultant (Internal Audit Services) Specialist (s) (Public Sector) , Manager (Financial & Operational Effectiveness), Consultant (s) (Financial & Operational Effectiveness), Manager (Assurance-Audit), Consultant (IT Effectiveness), Consultant (CCH TeamMate), Associate Director (Mergers and Acquisition), Analyst (M&A), Manager (M&A). Also other positions available in Uganda and Tanzania – D/L for all is 31/1.


MainaT said...

PWC are really gearing up to serve the our growing economy and wider EA economy. I think audit/financial reporting will become a beigger concern in the next few years.
Assuming we can overcome our current myopic concerns

E-Nyce said...

Anyone know the prices for Kisumu, particularly for Fly540?

ka-investor said...

The post election violence has caused alot of havoc and pain, but at least now KQ has lowered their charges. I can now ask my boss to honour the long awaited 'team building' so that we fly to White Sands, which i believe has also lowered their accommodation rates too.

Something very fishy is going on NSE. some unconfirmed information says that the monday halt was not due to any system hitch. In fact, the system is very strongly backed up and trading can't be halted because of that. Last week all government shares were 'out of supply' and no proper explanation was accorded. I think the NSE is being inflated intentionnaly.

Thanks to KBC we can now watch the African Cup matches 'live'. is this not a crime, after live coverage was outlawed?

Anonymous said...

What ka-investor is saying to worrying for me. I have just liquidated a bond to buy into the stock market.

Should I tell my broker to cancel the purchase order? My order is Equity at Ksh.132, KCB at Ksh.27, HF at Ksh.38 and Access at Ksh.23.

I would appreciate comments on this. I don't know that much about the market. I only know that when it goes down I am supposed to buy :).

Are we saying that it is still overpriced?

Siasa na Pesa said...

You all seem surprised that the NSE Folks would work hard to show that the stock market is resilient to the current crisis aka "Business as usual." The numbers are being cooked. The question is how bad is the cooking? Kwani Kenyan investors are dumb enough not to forecast certain risks..... I am shocked by Kenyan institutions.

bankelele said...

MainaT: Consulting & audit firms have done well and are expanding. Deloitte celebrated 100 years and are putting up a new building in westlands

E-Nyce: I believe it it 3,540 round trip + tax (is that too low? - check their site)

ka-investor: KQ down 10% yesterday after their reduced load disclosures. I'd like to buy their shares if they continue to dip. I too need a holiday in Mombasa!
As for NSE...

Siasa na Pesa: Ok there are soem people programmed to deliver good news (CBK gov) but some share prices would naturaly be expected to have corrected - considering that no one had factored in post-election events of such magnitude

Maishinski said...

Wakeup call:

NSE doesn't work on Fundamentals. It's all about greed and opportunity.

Right now people are holding because they know prices are supposed to fall and they don't wanna lose out on previous gains. Prices can only go down if the bids are matched by offers. It's catch 22. A "Quasi bear run" o some sort.

If you understand the "bigger fool theory" you will see NSE in its true form. High risk - high return.

pesa tu said...

@bankelele: If we really go down then the mkt is the best place to put your money.


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