Friday, March 02, 2007

slide continues

The slide at the NSE continued for another week with the index sheding some 150 points on wednesday the hieghest in recent times. in fact today the index is sniffing the sub 5000 point. just at the begining of the year the index had crossed the 6000 point mark heading north. meanwhile most companies have continued to report increase in profits although the profits are not as good as were promised by the price rally of last year. most investors are panicking and due to this several short cuts have come up. one good thing that came belatedly was the CBKs warning on the schemes that have the potential of bringing down even whole goverments.

However the slide provides the best oportunity to buy. for those who missed out on some very good counters, you can take positions now when the slide is happening. and for those who already have shares, in those counters, you can buy to net off; bring down the average cost so that when it starts to rise you shall have made a profit.

further to that damning reports came a foot about brokers who have been selling investors shares without their knowledge. i was appalled when Kimunya straight faced, told all and sundry that it wasnt posible to do that while there are live cases of people who cannot get either their money or their shares from the brokers or investment bankers. whats more suprising is that the govt which Kimunya serves is trying to seek reelection on the basis of improved economy, but with the index retreating fast and illegal schemes sprouting unabatted it may prove to be a hard sell.

even the poverty survey did not help matters since it showed that the 5.8% economic growth only helped parts from which the govt ministers come.

finaly several pple have sent me what they call damning reports on a scandal that threatens to bring down the largest media house in east africa. I have tried to discourage these emails by suggesting that they dont help those mentioned or their loved ones and children. I even suggested that this is not the only place where people climb the coporate ladder on their backs but they still keep coming. finanly someone has put an investor perspective to it. How will it affect the share price and the stock market as a whole?

odegle tip of the day ... this is a season of dividends and bonuses and so on. its good to reinvest all distributions of whatever kind for compounded growth.


  1. Bad as it may be, it looks like somebody (or some people) somewhere have a score with a person/persons at Nation to settle. Why not bring the matter to the courts of law for settlement?
    The NSE downward trend must have been expected, nd its not only the NSE - just check all the major bourses- NY, London, Frankfurt, Paris - they are all headed down and the economies are booming!

  2. The nation thing is not a shocker, it happens all the time, of course it has to take some bitter person to blow it up. Be who you choose to be, it is a free world

  3. The way I look at it is that the Aga Khan will intervene NOT coz of the sex scandals but to ensure the management sells more newspapers, ads, etc...

    Profits matter!

  4. from what i now gather, nation may have to be more careful. if its true that the staff are this demoralised due to irresponsible sexaul behavior then they may need to be very afraid. what if kiss fm decides to get those sad editors and reporters from nation for their new paper. they useed this method to create the two leading fm stations. is it true that some of nations best photo journalists live in kibera and the likes of mathare? since they are paid peanuts?


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