Kenya Market Weekly- March 03, 2011

Insight- Financial Literacy

Atleast, I know a disaster when I see one; Sometime back, I had the opportunity to attend a small gathering discussing matters relating to investing. The unfortunate thing is that even when some advisers will tell investors how wise it is to take positions when prices are down, they do not discuss the fundamental elements of behind their position. There is lack of content and discretion in investment forums. Matter of fact, you cannot brush through a portfolio selection process in ten minutes and expect to leave your audience fully equipped on the topic. They say that illiteracy is the foundation of all financial struggles. But even with information, you cannot succeed without the desire to buying assets and avoidance of accumulating liabilities. Notably, the line between the two is very thin. Please get an Investment Adviser to help you through your goals.

Market

The NSE 20 Share Index recorded strong activity during the previous week. This was mainly due to the of buildup of positive sentiments in the financial sector following the release of FY2010 results. The NSE 20 Share Index recouped some earlier losses to close at 4,269.51 (0.04% higher) while the NSE All Share Index gained 0.32 percent to close at 97.73. The focus, as most banks release their results is the long term income gains as most banks are posting huge jumps in profitability and handsome dividend payouts.

Barclays

The EPS grew by 73 percent from 4.5 to 7.8. The bank declared a Kshs. 4.7 final dividend and a 4:1 share split. Price appreciation past the current levels is very unlikely. Despite this, activity is set to remain high as investors take positions as we head towards close of register to benefit from the dividend payout. The counter closed on at Kshs. 69 on Thursday’s trade. Good long term buy.

KCB

Posted 56 growth in pre-tax profits to Kshs. 9.8bn., closed at Kshs. 23. Counter may not gain much ground going forward owing to high liquidity. It is noteworthy that at the current PE of 8.36x against the sector’s 14x, there is still a substantial upward potential but not in the near short term. The company will pay a final dividend of Kes. 1.25 with the register closing on May 10, 2011.

Kenya Airways

The low price on Kenya Airways (last closed at 39.25), and a very attractive PE of 8.98 makes for a good buy at the current price levels. The counter has attracted a lot of foreign investor demand in the recent past.

Housing Finance recently signed a deal with EADB which will see it co-finance larger projects. The partnership raises HF’s stakes in the mortgage lending sector which KCB has been a dominant player. The co-financing deal will enable the bank to lend upto a maximum of 2billion. HF closed at 27.25 on Thursday up from the previous session’s 26.75. The bank is expected to record an impressive performance following its increased lending in 2010 after a successful bond issue.

TO WATCH

Kenya Airways, Equity, NMG, KCB, HFCK, Centum, Coop Bank, Bralirwa.

East African Markets Week Ending Feb 25, 2011

Overview

East African Economies are expected to expand by 5.2 and 5.7 percent in 2011 and 2012 respectively. This is according to the UN in a report released earlier in the week. The growth is attributable to earlier gains made in 2010 notably in the manufacturing and service sectors. Despite the progress made, it is noteworthy that the region still falls short of the 7 percent required to attain the UN Millenium Development Goals (MDGs). Perhaps, one great challenge that the region still fails to address is sustainability of measures that have been taken to address some key growth drawbacks. Among them is the food security that has constantly been addressed by offering relief food, call lines and emergency responses via sms. All this has often come when calls to address availability of water, farm inputs and best farm practices have yielded no grassroots effect.

The regional market received a boost after the East Africa Community started the harmonization process for capital markets regulations. This will ease the movement of money across national borders making it easier for investors looking for cash. The first phase will entail the formation of a single financial market to be completed in 2014 with a grant of Kshs. 1.28bln. The second to this is a five year phase which will culminate in the formation of a common stock exchange.

Kenya

This week was characterized by improved activity. On Wednesday, the market closed a few points higher after a 3 week losing streak. The gain was as a result of positive sentiments following the release of FY2010 results by banks. Notably, the NSE 20 Share Index, week on week gained 0.54 percent down to close at 4,284.90 while the NSE ASI closed 0.02 points higher at 96.96. EABL topped the list of foreign buys followed by KCB and KenolKobil. Foreign sales were heavy on KenolKobil, Equity and Kenya Airways.

Barclays Bank released its FY2010 results posting a 51 percent growth in pretax profits boosted by a 3.54bn gain from sale of its custodial services arm. The counter closed Wednesday at Kshs. 69 with very further upward price appreciation expected. The counter is currently trading at a PE multiple of 8.78x from an earlier 13.89x and against the sector’s 17.48x. The company has a forward PE of 7.32x at the backdrop of a 20 percent earnings forecast. One of the key drivers to the recent price appreciation has been the attractive dividend and the proposed share split of 4:1 for every existing ordinary share. The banking sector is set to remain vibrant as other banks release their results.

Airtel and Telkom are set to launch their 3G networks in the coming week. This is likely to set ground for heightened competition in the data services in an industry that has been marred by competition, greatly affecting Safaricom- the listed mobile telephony firm. Safaricom is set to launch its Long Term Evolution (4G Network) soon, a move that is seen to be its only bet in maintaining its foothold of the market where it has 75.9 percent of the mobile subscriber base. Globacom (Nigeria), Vodacom (SA) and MTN (SA) are also testing the 4G network mainly for data backhaul.

According to the CMA, upto 6 companies could list at the NSE among them British American Investment Company and Transcentury. This could increase vibrancy in a market that has had a lot of foreign investor interest but has continued to lack key deals to rev up good volumes. The new NSE OTC market rules are also set to be released in the next 3 months. The introduction of this market will offer a graduation platform for SMEs to later list in the main market segment.

Uganda

Following a peaceful election process last week, the Ugandan shilling shtrengthened against the dollar. Despite the sharp rise in the Ugandan shilling, the stock market still recorded small volumes of trades. As investors get less wary of a looming violence, the sharp rise in the Ushs is mainly being attributed to a calm following the elections and may not hold going forward. The USE All Share Index closed at 1,188 down from the previous 1,215.46. DFCU was the heaviest traded counter moving a total of 202,626 shares at Ushs. 900. Also active was NIC while SBU, UCL and Bank of Baroda moved lower volumes.

New trading rules which were set to take effect at the start of the year will be in effect in the coming week. Notably, trading days are set to change from 3 to five per week. The move could increase vibrancy in the market that has seen little volumes change hands on weekly basis.

Tanzania

This week saw the Nation Media Group cross list 157million shares at the DSE. The cross listing makes NMG the first media company to be listed at the bourse and brings 16 the companies listed at that bourse. The DSEI closed Wednesday at 1,176.38 marking a week since the index posted any change on Feb 17^th when it closed at 1,175.08. CRDB still remained the most active moving a total of 132,296 shares at an unchanged price of Tshs. 135.

Mobile phone company Tigo blames price wars for the current drop in revenues currently being experienced in most African countries. On the larger economy, the drop in calling rates has played out against inflationary pressures as food and oil prices continue to surge amid drought in the region.

Rwanda

This week saw 11,041,400 Bralirwa shares change hands on Wednesday. The shares traded at a stable price of Rwf. 170 and were mainly driven by foreign buyers. Very little volumes were traded on KCB at Rwf. 187.

Rwanda’s biggest lender by assets, Banque de Kigali is set to issue its IPO in May this year. The listing will add to the vibrancy at the newly established RSE which currently has 3 listings. On Wednesday, Bralirwa, the most active counter at the bourse moved a turnover if Rwf. 2,510,100 on 5 deals which accounted for 14,000 shares. The price edged down to close the day at Rwf. 180, down from Rwf. 189 driven by huge supply.

INVESTING IN 2009 AND BEYOND: TRACKING THE ECONOMIC RECOVERY

Even when we know what is right, too often we fail to act. More often we grab greedily for the day, letting tomorrow bring what it will, putting off the unpleasant and unpopular. ~Bernard M. Baruch

The 2003 – 2007 growth paradigms seem to have weathered from the onset of post election violence in January to the depth of the global financial crisis in the third quarter of the same year. This was demonstrated by the sharp fall in stock prices, the sudden drop in value for the local currency, doubling inflation rates and a fall in the national output. Sum that to the declining remittances by the Diaspora population and the situation can only get worse.

Its true that 90 percent of the times, the best financial analysts don’t beat the market. However, our guesses of the likely future help shape our decisions. When done over time, our accuracy levels increase and we are able to make more fruitful decisions than before. The same does not however hold when decisions are made in consultation, and by team of experts who have mastered the art of using past trends to predict future expectations.

Speculation at the moment is rife that the worst could be over. Even if t was over, recovery will definitely not be within a day, not even 3 months or half a year, We still don’t expect full recovery within a year. Stocks for example will need sound bases to stage sustainable advances. The local currency too needs more besides the central bank’s ‘fixing’. The purchasing power of most Kenyans seems eroded and corruption and red tape seem to spell doom to any small gains being made by businessmen. Politics have had their undoing and the typical investor still has to grapple with poor governance in the investment maze.

Majority of Kenyans are more confused today than they were at the peak of the violence that rocked the Nation a year a go. Even in the local dailies, what seems to thrive is doom and gloom. And whether you are being affected by a loss in stock prices, an eminent layoff, being asked to work for less or asking your staff to work for less, being unable to service your mortgage, or just the simple lack of fuel to get back home, the pain is real.

As citizens, investors, employees, employers, finance experts, lecturers, starters, entrepreneurs or students,we must separate emotions from real facts. We must mve from gloom to more acton oriented thinking, we must think about the actons we take today and how they will affect us in a month, a year, a decade to come- with or without the money to get us there. That means that we have to understand the current situation and use it to project the future.

Emerging Africa Capital in Association with Nairobist Media and Strathmore Business School has teamed up to bring you a one day event that seeks to address your most worrying concerns.

Among the issues to be addressed are:

1. Where is the money lately
2. Which Way for the Kenyan Economy in 2009
3. Investing options in the Current Year, and How to Tap into them
4. Corporate Governance as a Hindrance to Investing in The country
5. The Power of Political Knowledge for Strategic Investing
6. NETWORKING Session

Investment Advisers: Why You Need One

In our everyday lives, we trust specific duties like medical treatment, educating children, servicing cars, among others to professionals. A wise saying it is, ‘a jack of all trades, a master of none’.

One area in which many people feel they have the expertise to replace a professional is in the management of their own finances. While it seems manageable, saving a shilling by avoiding the efforts of an investment professional, often times creates more problems than trying to stop a plumbing leak with office glue.

It is extremely risky to manage your finances without professional help mainly due to the fact that you rely on sketchy, third-party information (misinformation) to make important financial decisions. This is potentially dangerous because you may lose out on valuable opportunities, spend a lot of time and energy tracking down answers to your specific questions. Further, chances are that you will end up buying current peak performers, causing you to buy high or sell low leading to costly mistakes and loss of opportunity.

The biggest benefit one acquires by hiring a financial advisor is that he/she is backed with extensive knowledge and experience in financial matters. Today’s financial market is increasingly complex and it is very difficult to make financial decisions solely, without expert advice.

The investment process usually begins with the Financial Advisor helping you determine your objectives, goals, risk tolerance, time horizon, and future needs. Next, the Financial Advisor spends time educating you about the investment process e.g. educate you on how securities are bought and sold or how a mutual fund portfolio is structured and managed. You will also get information about specific investments such private or listed stocks, corporate or government bonds, mutual funds, asset management portfolios and unit investment trusts. You will learn about the inherent risks of each investment instrument and the transaction costs or portfolio management costs.

Thirdly he/she helps you, the client, develop a portfolio. While every investor has different needs, no investor can place all of his or her eggs in one basket. The risk of doing so is that if your investment decreased in value, you would face grave losses. Portfolio diversification allows you to spread the risk among various asset classes including stocks, cash and cash equivalents and real estate. Once that allocation is made, further diversification is made, for example, rather than owning one stock, the Financial Advisor may recommend four or five stocks, each within a different industry.

The Financial Advisor next recommends specific investment alternatives within the agreed upon investment strategy, allowing you to make the final decisions.

Any Investment advisor of Emerging Africa Capital is fully competent, acts with due diligence and has high ethical standards. Each portfolio is continually monitored and periodic meetings are scheduled to discuss performance with you, the client.

When you work with our financial advisors, the focus will be on you. Your needs. Your goals. Your life. Every one desires a successful long-term investment strategy, you deserve the personal insight, guidance, and support that only your financial advisor can provide.

Real Estate Investment Trusts: Are They For You?

If you once invested in the Nairobi Stock Exchange, chances are that you have made excellent returns over a short period of time. Sadly though, you stand the risk of exposure to an array of factors characterized with investing in non diversified portfolio. If you have considered diversifying your investment portfolio but didn’t know which one to go for, then Real Estate Investment Trusts may be an option to consider. But again, you may ask; are they really right for me.

Majority investors today consider investing in real estate as the ultimate investing goal. To the wealthy individual, it is merely an investment like any other; buy today, cash in tomorrow. That just goes as far as direct real estate investing is concerned. But now, there are the Real Estate Investment Trusts, commonly known as REITS.

Simply put a REIT is a pool of funds that is invested in real estate. Funds are drawn from investors and put under the management of a fund manager who then decides on the kind of real estate investment to go for based on the amount raised by subscribers for the trust. REITs will typically invest in real estate or real estate related assets. These can vary from shopping centers to office buildings, hotels and mortgages secured by real estate.

There are three types of REITs but the most common one is an equity REIT. The REIT basically entails having investors’ pool funds by way of buying shares of the REIT and getting an income out of it. This income is mostly paid on an annual basis.

The other type, a mortgage REIT basically entails lending money to owners and developers or investing the money in financial instruments secured by mortgage or real estate.

A hybrid REIT combines both the features of a mortgage REIT and the equity REIT. An investor in this category has his portfolio well diversified against the downturns in each category.

The United States has the most developed REIT market in the world. Other rapidly expanding REIT markets include Australia, France, Japan, Canada, the Netherlands, Singapore and Hong Kong. In Australia, the REIT concept was launched in 1971 with the General Property Trust being the first REIT to be listed in the Australian Stock Exchange (ASX). There are over 60 REITs listed today and Australia has the largest property trust in the world after the United States. Germany planned to introduce REITs in 2007 but the legislation is seemingly yet to be passed. There are already 7 REITs in Hong Kong. In the United Kingdom, 7 companies converted into REITs in 2007 after the Finance Act enacted a legislation allowing them to do so.

In Africa REITs are also gaining popularity in some key African nations where financial markets are well developed. Key in Africa is South Africa which, according to Ernst and Young was the top performer in the world in terms of total return over three year period giving a return of 34%. The number of public REITs in South Africa was 7 by end of 2006. However, the market had the lowest leverage among the key markets in the world.

Kenya’s market is slowly coming of age. Bora Real Estate Investment Limited (BREIL) was launched late last year at a point when Kenyans felt that the property market had completely sidelined the starters in the investment maze. One of the reasons behind setting up BREIL, according to Joe Macharia, the CEO of Bora Capital (the company behind BREIL) was to provide an investment option that works for small savers who cannot afford to put up a payment to acquire property or build a house.

The BREIL structure is a hybrid REIT but private (not listed in any market). Investors invest in the fund by subscribing to shares of BREIL and getting a regular income on an annual basis.

One of the advantages of investing in REITs is the tax advantage enjoyed by the investors. This is so because REIT investing allows for tax rebates on gains.

There is the old saying that you can never go wrong on land. Same applies to property as it can only appreciate in value. An investor therefore looking for gains over the long term would benefit from investing in REIT as it offers stability over ones investment.

One challenge with investing in REIT is that the target groups, mainly those within the age bracket of 25 to 45 are excited about short term gains. This is not a common feature with REITs which are illiquid and have an investment time span of more than one year.

REITs may just be what your investment portfolio needs. However, do observe caution in taking on REITs, contact your Investment Advisor for more information on the risks and benefits to your investment portfolio.

Investing In Stocks: To go Short or Long Term? The Right Way Revealed

To say either one of them is the best solution is definitely being biased. This is because every individual is unique. The decision on which way to go really depends on an individual’s investment personality and risk profile.

There are risks in both long term and short term trading. The latter exposing an investor to greater risk. Generally, volatility and risk diminish over time. The longer you hold on to your investment, the higher the probability of you earning a profit.

With short term trading, you have to speculate which shares are going to be most volatile. In this case you see profits immediately but if you speculate on the wrong stock, you might end up losing part of your investment capital. If the company you are vested in is fundamentally strong with a strong upside potential, you will lose out on big potential gains if you were to cash out too early.

When thinking about long term investment you can take advantage of dividends payout. Many stocks can pay out dividends to their shareholders month after month. This could produce a monthly income for you.

With long term investing, although there is a higher probability of earning a profit, you would need to be particularly patience. Many times, it takes over a year to earn a significant gain.

You do not have to do much with a long term investment. Long term investors are proactive while short term traders are reactive. A long term investment plan requires much less time to set up, manage and evaluate than any other form of investing.

With short term investments you would see more instant returns. In this case, however, you require quick action on information as this is one variable that changes a stock’s price in the short term. If you read into information fast enough, profits would usually not be far behind.

One of the advantages of short term investing is the compound effect. If you need your investment to grow, reinvest what you make in the short term and reap even greater returns in the long term (if you maintain your good speculative run).

Most importantly, when considering short term investing, you need to realize that you will be paying more commissions and hence to make actual gains, your sell and buy prices must reflect profits even on deduction of commissions.

Both short term and long term trading depend on how you trade. The things to consider in deciding which way to go include;

1. What system fits with your personality, are you a risk taker or are you risk averse.
2. What is your level of knowledge on the market?

These questions, once answered will reveal ‘the right way’ for you. Invest, long term or short term. The choice is yours.

Escaping The Debt Trap

I once met a colleague’s friend, introduced to me as Miss. Wheeler Dealer. After a chat with her, I later came to learn that Miss let’s call her WD buys and sells money, a trade that most people today refer to as shylock. However, Miss WD is not the ordinary shylock you hear being discussed in downtown Nairobi. The type that auctions cars, property when the borrower is unable to pay. She calls her business a professional shylock.

That aside, when one listens to her, she has a great success story to tell. Every day, she has borrowers looking for as little as Kshs. 1,000 to as much as Kshs. 50,000. Majority of her clients are aged between of 25 and 35 and none will borrow money to put into business- 99 percent of the times, its for personal use.

The reason that she is doing booming business is because majority of us within this age bracket are living way beyond our means. Having interacted with over 5,000 investors on a one on one basis since May 2006, I have learnt the art of reading a person by the way they talk and behave and not the cars they drive. If you walk across the streets of Nairobi just after dark, you see many young men driving all sorts of cars. And there is nothing wrong with owning a car. But it worries me when one buys it to fit in, spends all his salary paying off for the loan, borrows more from a shylock and at 35, has not a single investment.

What complicates the whole equation even more is that most get wooed to investments that do not meet their objectives with the hope that quick money will come their way in due time. How many times for example have friends confided in you that they borrowed money and gave it all to a pyramid scheme with the hope of doubling returns over a short period of time?

My experiences in the past few years have taught me what I need to do and what I need to avoid to excel in my financial goals:

The first and most important one is never to borrow unless I am doing it for business. My lending friend, Miss WD always gets most enquiries on Fridays because majority of her clients want money to spend during the weekend. The temptation to hold money we have not worked for has driven many to acquire credit cards.

The second is that the most important bill that counts is that of my well being. My medical insurance is the number one priority, then the insurance of my assets. For the salaried, this never comes in as a priority; after all, your employer automatically deducts the bill at the end of the month. Just think of it, if everything burnt down today, what would you do? Take a loan to start over again or run to your insurance company? It’s less stressing to do the latter. But it starts now.

Thirdly, you will never have enough capital to do any business you have ever wanted to. There will always be bills to pay, things to buy, and basic needs to be met. Focus should be on developing the idea, getting it to work and leveraging on the little resources available.

Fourthly, and a link to the previous point, work your math right. You cannot borrow money from a bank to repay Kshs. 200,000 per month if you only make Kshs. 200,000 per month. This will kill the business after one month or get you into a borrowing cycle; Borrow from Sam to Pay the Bank and from Peter to Pay Sam.

Finally, you must be financially literate. In the five years of my banking career, I learnt that it is one thing to have money and another to utilize it productively. How many times have you seen people take loans to invest in property even when the repayment lags the monthly income, or bankers venturing into transport business, an industry they know little about? Majority end up losing their money. Not to mention the number of people using credit cards without making enough to sustain their repayment.

What you do now is a reflection of what you will be doing ten years from now, unless something changes. The only person to make that change is you. Take charge.

Great Lessons From Great Company Leaders

Warren Buffet, one of the most celebrated equity investors in the world, in one of his featured presentations advises people especially the young to start investing early. He gives himself as an example having started investing at the age of 14 and regretting that he never started early enough.

Very few of people in this world are naturally awarded millionaire status. Majority have struggled through multinationals whose modus operandi were set while they were still in business schools. To them, promotion meant sleepless hours in their offices and results were defined by their supervisors’ expectations. Through hard work, they made their way up the organization to finally achieve top levels in the corporate ladder.

On the flipside, we have the few who the society always labels the risk takers. The few who quit school or their employment to nurture their noble innovations. At some point, the society will not absorb their idea because they just don’t see it work. Through persistence and an unusual determination, they pursue their dream until they set their hand on anticipated results. Evidently, its only the strong that survive; the reason why most of startups never make it to the second year of operation.

The two illustrations above basically explain why we have different personalities who can never be measured on an equal scale. Take for example Jack Welch who turned the struggling giant company, General Electric, into a dynamic company that everyone came to admire increasing its value from a few billions to hundreds of billions. All this, he did as an employee. On another hand is Steve Jobs who created a company out of a noble chip idea.

Although one of these had shareholders to satisfy the other had his dream to realize. Both are examples of success through hard work.

There are a few amongst us who are able to turn their noble ideas into great businesses. At the same time, there are those who can turn good companies into what Jim Collins defines as “Great Companies”. To me, there is no written rule in achieving any. It perhaps entails following ones instinct and not a written rule. To Steve Jobs, it was persistence, persistence, persistence. For Welch, it was a no nonsense leadership model which gave the company a competitive edge.

University teaches us to get jobs, and more often than not, we all get good jobs, earn great salaries and life goes on. But what gets us out of the great job we have is our determination, our desire to settle for more than the ordinary.

In my career, once in commercial banking (employed) then later in private banking (self employed), I have learnt that we do not all need to start our own businesses to be a success in future. Locally, we all consider Titus Naikuni as a great success as the CEO of the national carrier, Kenya Airways. Still on an equal footing, Jimnah Mbaru is a success, not under employment but running his own company.

Bottom line is, we can all achieve success whether as employees or entrepreneurs. The true measure of each is the degree of energy, commitment and willpower we put into it.

Safaricom Announces IPO Allotment

The Safaricom IPO outcome has been announced. The IPO was oversubscribed by 532%. Allocation was on a pro rata basis. This means that for the number of shares an investor applied for, one gets 21% of the number of shares.

With such a rate of over subscription, we propose taking positions in the counter and holding on to the shares for a period of time; at least until all excess demand is absorbed and speculators exit to give room for investors.

While it is hard to tell what price the stock is to finally stabilize at, in our opinion, Safaricom is bound to remain profitable at least for a period of time.

Investor Update- May 30th 2008

Licensed by the Capital Markets Authority as Investment Advisors

May 30^th 2008

EmAC Investor Updates

Its five months gone since 2008 kicked off and just few weeks before we get to know what the Treasury has for Kenyans for another 12months. With the proposed miscellaneous amendments for regulated financial service companies set to form a house agenda in parliament, the players will be keen on knowing what this could mean for their business. To investors, it’s just a step that was long overdue as corporate governance has cost investors heavily in the past. For foreigners who were eyeing the frontier markets, there has never been a better time to invest in the country.

With slow developments on regulations, something is keeping the market unusually keen. One of the occurrences is the opening of Safaricom Shares for secondary trading at the Nairobi Stock Exchange (NSE) on June 9^th 2008. Majority of investors did not expect an oversubscription to that extent this was owing to the fact that inflation was at almost 20 percent. Come the opening date, majority of investors will be faced with the challenge of deciding on whether to sell off their shares or hold for a period of time. And even more headache will be what to do with the huge refund check.

In investing, there is always an investor and the speculator. There is nothing wrong in being either a speculator or an investor. It always boils down to the amount of risk one is willing to absorb.

For the local market, there may not be any better time to invest in equities than investing within the next ten days. This is a time when the market is most cash strapped. Besides, the market will be awash with cash once the refunds check in to clients accounts.

Of all the products EmAC offers, we would highly recommend stocks for the short term. Anyone investing now should expect to reap out good returns by September 2008.

For people willing to take on short term counters, we would recommend CMC Holdings, Mumias Sugar Company, Centum Investments, Barclays Bank and East Africa Breweries which closes year in a month’s time. I still have my reservations for Equity Bank and Access Kenya whose prices seem to be on the extreme highs. Anything above Kshs.280 for Equity or above Kshs. 30 for Access seems too ambitious considering that their PE is at 10 and 34 respectively.

On the basis of affordability and who will be investing in two weeks, I see counters like Mumias, KCB, Kengen and Safaricom being the key beneficiaries of the refund cash.

EmAC Now Investment Advisers

Emerging Africa Capital is now an Investment Advisor Licensed by The Capital Markets Authority in Kenya.

Thanks to all who supported us. Check our new look site from Monday May 17th 2008 for more.

www.emergingafricacapital.com