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Friday, July 28, 2017

Why Ma’s visit is a big deal

Alibaba Group chief executive Jack Ma attends a session of "Future-Proofing the Internet Economy" at the World Economic Forum (WEF) in China's port city Dalian, September 9, 2015. /Reuters
Alibaba Group chief executive Jack Ma attends a session of "Future-Proofing the Internet Economy" at the World Economic Forum (WEF) in China's port city Dalian, September 9, 2015. /Reuters
Jack Ma, the Founder of AliBaba, is visiting Nairobi this week. This is a big deal. Ma's story is truly an extraordinary and aspirational one.
In 1994, Ma heard about the Internet. In early 1995, he went to the US and with his friends' help he got introduced to the Internet. During his first encounter he searched the word "beer".
"In 1999, I gathered 18 people in my apartment and spoke to them for two hours about my vision. Everyone put their money on the table, and that got us $60,000 to start Alibaba," he said. Today, Jack Ma's Alibaba has a market Cap of $388.86 billion. That's called ''value creation'' plain and simple.
The dollar is sinking and especially after Friday's very benign inflation readings.
"This election is going to be won on turnout, period," Duncan Odoyo told the FT's John Aglionby.
The Nairobi All Share, untroubled by the proximity of the election, rallied 0.32 per cent to close at 153.63 and is 15.12 per cent in 2017. The Nairobi NSE20 Index 0.43 per cent to close at 3658.65 a fresh 12 month high. Equity turnover clocked 1.164 billion and has spiked big over the last few sessions.
Safaricom closed unchanged at Sh23.00 and traded 19.30 milion shares worth Sh444.85 milllion. I am of the belief that we are on the cusp of lift-off in the eCommerce space and that Safaricom are about to build as effective an eCommerce highway as their Information highway. Not convinced that shareholders have grasped tis blue-sky opportunity that Safaricom sits atop.
Kenya Airways issued a notice of an extraordinary general meeting, to be held at KQ Pride Centre, off Airport North Road, Embakasi, Nairobi on 7 August, 2017 at 10.00 am for the purposes of considering and, if thought fit, passing the following resolution as a Special Resolution.
Kenya Airways closed lower at Sh4.85 but was trading at Sh5.00 at the closing bell.
Uchumi pushed on 6.9 per cent to close at a fresh three month high of Sh3.10 and on good volume action of 1.44 million shares. Uchumi is 29.16 per cent over four trading sessions. Nakumatt's imminent demise has made Uchumi more attractive to an investor.
The banks were real strong and this is surely a positive spill-over from the news that the Central Bank is convening a committee to look at the interest rate bill. Investors might be getting ahead of themselves, in my opinion.
KCB was the most actively traded bank share and rallied 1.91 per cent to close at a 2017 high, previously reached 8th and 9th June of Sh40.00 on strong volume action of 8.96 million shares worth Sh358.60 million. KCB is up 39.31 per cent in 2017 on a price basis.
Equity Bank rallied 1.97 per cent to close at Sh38.75 and was trading Sh39.25, 3.29 per cent at the finish. Equity traded 4.15 million shares worth Sh161.19 million and is 29.16 per cent in 2017 on a price basis.
Diamond Trust Bank rallied an eye-popping 8.48 per cent to close at a fresh 2017 high of Sh179.00 and is now 51.69 per cent in 2017. DTB traded 11,700 shares.
CO-OP Bank, after a bonus issue related adjustment, bounced +3.57 per cent to close at Sh14.50 and traded 1.76 million shares.
Stanbic Holdings rallied 4.60 per cent to close at Sh79.50 and traded 320,100 shares.
National Bank pushed on 1.37 per cent to close at Sh11.05 and is 53.47 per cent this year with all of that acceleration coming after Jaindi Kisero's article re KCB's interest.
Crown Berger which trades on a PE Ratio of 37.83 and hence is surely the most expensive share at the NSE on a PE basis corrected 3.45 per cent to close at Sh70.00. Crown is 66.6 per cent in 2017.



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