Shares Portfolio August 2010

Market picking up steadily since last quarterly review in May 2010

The stable
Diamond Trust ↑
Kenya Airways ↓
Kenol ↓
Scangroup ↑
Stanbic (Uganda) ↓
Uchumi ↔

– Best performer: Scangroup Safaricom up 25% this quarter
– Worst performer Kenya Airways down 10%
– In: Kenol
– Out: None
– Increase None
– Decrease None
– Unexpected gains/losses: None

Events & Outlook:
– Performance: The Portfolio is up 8% in the last three months while the NSE Index is up 10%.
– Got dividends from all the banks, which are improved performance this year. Dividend included that from Stanbic Uganda but its still a problems to cash as Stanbic Kenya is incapable of partnering with Stanbic Uganda to ease the encashment process – even better would be for Stanbic Kenya though CSFS to facilitate more share buying perhaps reinvestment of dividends to buy more Stanbic UG shares
– Sat out the KCB rights issues whose results came out today (August 10). The Bank had set out to raise Kshs 15 billion ($189 million) from shareholders but yielded 83% of that – 12.45 billion
– Scangroup’s investment in Ogilvy Africa
– Kenol rebounded from problems at battle with government to report some much improved first half profits.
– Looking forward to buying Safaricom shares, and attending their (no SWAG) AGM
– Uchumi is yet to re-list despite exiting their receivership phase

KQ leased 737 from KLM

– Privatization: The Kenya Government is short on cash but their privatization basket is still empty. Nothing has come yet from National bank and East African Portland cement, while the next infusion of cash is likely to be from Kenya Power & Lighting Company. Meanwhile the Kenya government bond market has been much more active than the equity one.

5 thoughts on “Shares Portfolio August 2010

  1. Afrika Investor

    Thanks for your great blog. I have been an avid reader for years. The Kenol purchase is a smart buy. Once the dispute with KRPL is resolved the share should price should pop. With the half- after tax profits of Kshs 1.1 Billion, Kenol is now trading at a PE of just 6.3! Incredibly cheap for a fast growing company.

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