Saturday, March 28, 2009

NSE weekly catch up-bottom found?

Another solid week at the bourse with the NSE index up marginally. Whether we have priced in all the bad news is something I remain sceptical about. I think NSE tends to price in with a lag and hasn't for example been taking into account the food and weather forecast for 2009.
Corporate Announcements and Actions:
NMG finally announced 2008 results. Was up 19% on 2007 driven primarily by strong cost control. Ksh4 DPS will be paid in May. I think this might be a tough year for it from the advertising point of view.
Co-op has bought 60% of Bob Matthews and is thus a stockbroker as well as its other businesses. The new broker will be the un/fortunately monikered Kingdom Securities. Imho, broking is a good easy business in Kenya. If your operational risk monitoring, prevention and detection is world class. Otherwise, there maybe cause to regret, moneterily and reputationally a few years down the road.
Hence Equity's well-known aversion to actually acquiring a broker licence. It held its AGM on Thursday to confirm the 3.9bn shares spilt-thingy, regional footprint/expansion and precious little on HFCK. I see HFCK as its potential achilles heel.
EA Portland has finally taken a hedge on its Ksh1.7bn loan from Japan. That took 5 years. And it still has Ksh3bn to go before paying off the loan...
USE:
Stanbic announced
48% rise in PAT from 2007 driven by 20% income growth agianst 5% cost growth. However, it also reduced DPS by 11% to be paid in June.
FTSE: Ended higher as Geithner's plan was being digested. MHO, I think the plan hinges on whether the banks will accept to sell toxic assets at throwaway prices. I prematurely exited Barclays after booking 100%gain only to see the UK gova give it a clean bill of health thus making price go up 24% yesterday! Waiting for end quarter profit taking.

2 comments:

Ssembonge said...

Maina, count your blessings. All my sells have been climbing higher. I'm not complaining though.

coldtusker said...

Hey... I&M Bank released their EOY results on 31 Mar. Check on their website. I will try to e-mail the info when I can.

Huge rise in NPLs over 3Q. I do not know the exposure to Swan Industries (Kisumu) but I&M was the bank that put them into receivership.

Loan loss provision was much more moderate than NPLs. Which begs the question how will this affect I&M in 1Q & 2Q in 2009?