Tuesday, February 12, 2008

Kutwa Tuesday: Capital Chickens

Capital rights issues come home to roost

Last October this post discussed banks' needing to raise share capital to support their rapid growth over the last five years. Since that time, Diamond Trust, NIC, Housing Finance, Equity and now KCB have all gone ahead and put plans in place to increase their share capital to catch up with their asset base.

KCB hopes to raise Kshs. 5 billion and hopefully this could spur some quality mid-tier banks, with foreign shareholding to step forward to the NSE listing place as well i.e K-Rep, Commercial Bank of Africa, Investment & Mortgages, Fina, Citibank and even Cooperative banks.

corporate news

KQ expands (From African Flyer blog) - Kenya Airways will from mid-year increase flights on routes in Africa (Ethiopia, Nigeria, Ghana), Mid-East (Dubai) and Far East (china, Hong Kong, Thailand)

Another stockbroker falls: This time it's another small firm – Nyaga stockbrokers. This is not unexpected, as problems were well known for over as year and had even been discussed in a stockskenya forum. The authorities (CMA) can’t pretend to act surprised as they had in the past considered taking action against the firm whose managers repeatedly sold investors shares without their knowledge – and when caught they would blame errors, and take their time correcting the situation, only to repeat the same up to last week.
- Though the NSE launched a 100 million rescue package, a Business Daily story mentions that as much as 820 million could be owed to clients.
- Other blogger takes: The KCIG has some suggestions for the capital markets authority while Coldtusker is dismayed by the pattern of bailouts of Nyaga Stockbrokers and Invesco Insurance after financial shenanigans.

OTC Bank shares: Are shares Family Bank available to buy on the over the counter?

New branches: coming soon Gulf Africa bank at Hughes Building - Kenyatta Avenue, and a new Family Bank branch opp. Yaya Center, Kilimani

Big radio opportunity: Kenya’s highest-rated radio show, Kiss FM
Big Breakfast Show (with Carol Mutoko) is looking for a new voice to join her on the show. Send a CV with a recording to md@kissfm.co.ke


MainaT said...

Banks, I'd really like to own a piece of I&M and CBA so I hope they can come to the market.
On Family, you can only trade if you already own some shares. Baado OTC. I suspect it'll start towards the later part of this yr.
On Nyaga, my hypothesis is that both it and Francis Thuo were bankrupt last Feb. The NSE won't have coped with both going under at the same time so one was delayed for an yr. It'll continue happening unless some basic measures are taken. O/wise, CMA is completely useless because it doesn't even control insider trading which is on-going.

Anonymous said...

Kenya’s highest-rated radio show, Kiss FM
Big Breakfast Show??????According to?

Anonymous said...

Banks,jimna mbaru says that the NSE will spend 100million to bail out Nyaga stock brokers. just where does this money come from? is it the NSE, the brokers or some sort of Insurance?

just what?

coldtusker said...

Where does KQ expect to find passengers for all these new/additional flights?

Is this schedule pre or post-violence?

Due to the tough rules for listing, it may be easier for the private banks to raise funds thru selling shares ala Equity Ban or private placements rather than go public.

JustWhat: The investors pay thru a NSE compensation fund. Yes, we get f****d for the brokers' thievery!!!

bankelele said...

MainaT: Hope so too, they haven't had any need, but with Equity and CFC racing past them in the capital race, they may opt for some (but maybe a fund would be a better match). Interestign point on Nyaga, that now seems to be the CW

Just what?: Coldtsuker has the answer - it comes from a % of every trade you and I make

Coldtusker: I expect KQ will have idle aircraft and will want to deploy them where's there's excess demand


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