Another low week (2,848 close), but I think Equity has brought a little cheer back into the bourse and will spar some little upward momentum for a few weeks. BBK announces on Tuesday and EABL announces interim numbers on Friday and KCB possibly the Friday after. On the negative side of the account, the Nyaga saga has really exposed us to what many of us feared was going on and from now onwards, no conspiracy will sound too outlandish. Some very practical steps for safeguarding your NSE pocket. No more calling broker dealers to place your orders, it was always there but its become a convenient way for dealers to eat your funds. Like JM's comment too.
EA Cables announced full year PAT of Ksh462m, 12% higher than prior year. Its a good result given the challenges rote by high copper and aluminium prices, high utility (elecritricity and fuel) costs and and a very competitive market in a generally lacklustre economic year. Its strategy to spread into the rest of EA actually held it in good stead. For 2009, with much lower commodity prices, I'd expect to 20%+ year on year growth. DPS will be Ksh1, 10% higher than prior year.
Equity's FY is analysed here. It bears repeating. Non-shareholders might be happy at a chance to get the stock at very low prices, but for us existing shareholders, it leaves us cold because it adds risk that wasn't really necessary. The history of spilts at the NSE is almost exclusively a bearish one.
Unga saw 33% turnover growth apparently wiped out by fx and will miss FY by 25%. Very strange especially as one would assume scarcity in maize would equate to better gross margins.
Gold is fast approaching $1,000 as investors survey other instruments' waastelands. FTSE is in a bit of a lull at the moment. I think many were hoping for greater detail around the Obama plan which as yet seems as muddled as Hank Poulson's botch-up last year. Lloyds TSB is now caught in the short-sellers' sights following HBOS' update.