Thursday, April 12, 2007

seeing through the trick

It looks like investors saw through the magic wand that equity bank waved the other day. the response to the bonus was the share value going down some 70% against expectations that it would hold steady or decline just a little. but you may also want to speculate that the 2 for one bonus (effectively a split if you ask me) was actually planned by some people who wanted to make a kill. thats why on the first day they flooded the market with those shares but got a contempt card in return. the shares have since started grudgingly inching up.this year banks have offered very good returns just the way industrial sector did well the year before. banks have been forced to up their game to stay relevant. Standard chartered for one has fully refurbished the westlands branch and of you are an excel customer then you feel like a king. the experience is just superb and the teller booth even has a comfortable seat! compe ni compe roo safi.

elsewhere its reported that tourism has so hit the roof that hotels are having difficulties managing the visitors population. and its not only in the coast. my friends could not get a bed in busia during midweek travel something strange and even in a dusty township of bumala the hotels are going for 2500 single! what have enterprising Kenyans resorted to , turn your nice house into a villa and quite your job. well at least until new hotels come up. Looks like Dr. Ongonga is just enjoying exceeding his targets.

but tourism cannot keep up with Kenyans who are remitting money home for all sorts of reasons. only problem is the local currency is gaining strength rather fast. for me, since Kenya is hugely a net importer, i suppose this is a good thing. but for those who invested in stanbic UG. it may not be too welcome. i only learnt today that between last month and now, the shilling has gained more than 4.9% points against the yen. other kenyans are saying that a stronger shillings is not good for export or toursim, but i don't know what they would say about the rand? its also getting stronger yet, more tourists are flocking there. so there must be something else that makes exports correctly cheaper. eg infrastructure, lower energy costs, lower labour costs, lower taxes etc.

sheng tragedy :
younger man to a young man : so umedai niwarushie rwabe rwabe?
young man to the younger man : zi nimesema uwapatie so mbili so mbili

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