With Vodaphone, a part owner of Safaricom, having given their go-ahead for the government to borrow funds using its 60% holding in Safaricom via Telcom, the government can now embark on some much needed restructuring ahead of its privatization which the government targets for before the end of the year.
The government plans to repay the loan by the close of the year using funds raised from the floating of 25%-26% of its holding in Safaricom thus putting a stamp on the eagerly anticipated Safaricom IPO.
So, as Kenyans and other investors around the world prepare for the upcoming Kenya Re IPO expected at the close of Feb or early March, investors need to do some strategic calculations to ensure funds availability for this – Kenya Re and the other two – Telcom and Safaricom – IPOs expected, with almost absolute certainty, in the course of the year.
Meanwhile, the market seems to be receiving some serious bashing from fleeing investors. Prices have really slid down across the board. The declines are however somewhat contained with none of the continuous 10% nose dives witnessed during market slumps.
In yesterday’s performance, out of 39 active counters, 27 declined, while 12 realized appreciations. Nation Media captured the highest decline down 16 shillings to kshs. 313, while Equity bank shed Kshs. 13 to close at Kshs. 197. Kenya Commercial dropped Kshs. 7.00 to close at Kshs. 252 while Diamond Trust and Kenya Power both closed kshs 6.00 lower at Kshs. 78 and 303 respectively.
On the gaining side, Williamson edged up Kshs. 9.00 to close at Kshs. 159 while CFC bank, which has appreciated strongly over the last two weeks hit an all time high of Kshs. 132.
The government plans to repay the loan by the close of the year using funds raised from the floating of 25%-26% of its holding in Safaricom thus putting a stamp on the eagerly anticipated Safaricom IPO.
So, as Kenyans and other investors around the world prepare for the upcoming Kenya Re IPO expected at the close of Feb or early March, investors need to do some strategic calculations to ensure funds availability for this – Kenya Re and the other two – Telcom and Safaricom – IPOs expected, with almost absolute certainty, in the course of the year.
Meanwhile, the market seems to be receiving some serious bashing from fleeing investors. Prices have really slid down across the board. The declines are however somewhat contained with none of the continuous 10% nose dives witnessed during market slumps.
In yesterday’s performance, out of 39 active counters, 27 declined, while 12 realized appreciations. Nation Media captured the highest decline down 16 shillings to kshs. 313, while Equity bank shed Kshs. 13 to close at Kshs. 197. Kenya Commercial dropped Kshs. 7.00 to close at Kshs. 252 while Diamond Trust and Kenya Power both closed kshs 6.00 lower at Kshs. 78 and 303 respectively.
On the gaining side, Williamson edged up Kshs. 9.00 to close at Kshs. 159 while CFC bank, which has appreciated strongly over the last two weeks hit an all time high of Kshs. 132.
2 comments:
hi
could the decline be as a result of investors cashing in or the market is correcting itself.
wat is your take on e a cables, do you forsee anything dramatic in their results, could they announce like a bonus considering they hv doulble their profits in 9mnths with the other acquisitions? do u see the price rising again?
Hi Anon,
I think guys are both cashing in and taking flight. Those that have made their gains are locking in their gains while the many speculators we have in the market are taking flight. The correction is consequenced by the change of the market from a buyer market to a sellers one.
Regarding the possible bonus on Cables, corporate actions are quite difficult to forecast, but, my experience is that companies usually bonus distribution is usually done in cases where a company feels it may not maintain the distribution of an anticipated dividend probably coz profits werent as stong or expansion plans may not allow for the usual dividend declaration.
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