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September 22, 2018

Africa’s day out in China

Central Bank of China
Central Bank of China

The big set piece event in China otherwise known as the 2018 Beijing Summit of the Forum on China-Africa Cooperation has come to an end.

"The future of China-Africa relations lies in our young people'' ... ''I am confident that the baton of China-Africa friendship will be passed from one generation to the next and that China and Africa, working together, will build an even more vibrant community with a shared future,'' said Chinese President Xi Jinping. Cheng Tao, a former head of the Chinese foreign ministry’s Africa division, said it was unfair to blame China for supporting governments accused of corruption.

“An African friend told me, our government is extremely corrupt. How come you’re still involved with them? Our government has asked the Chinese government to build a bridge and a hospital, but the Chinese government shouldn’t help them,” he said, without naming the country.

“I told him - you voted for this government. It’s the only government we can deal with. But the bridge and the hospital are not built for the president or officials, but are for the common people. So I think this is another perspective that can be considered when looking at this issue.”

"Biggest news of the day broke, Chinese telling Kenyan Govt to relook at the commercial viability of SGR, media houses just gloss over it or missed it completely'' said @kachwanya.

The Indian Rupee is at a record low, the Indonesian Rupiah is at a 20 year low, the Argentine Peso and the Turkish Lira have fallen off the charts.

South Africa reported that it slid into into a recession as economic activity declined by 0.7% in Q2 of2018 q/q after a 2,6% decline in Q1:2018 @StatsSA

The Rand is at risk of a precipitous, asymmetric downside move as far as 17.00 to the Dollar. It was smashed into smithereens and was last at 15.53.

MTN market cap plummeted from almost $14bn to less than $9bn since #Nigeria hit it with $10bn of backdated-tax claims and FX-transfer penalties.

The Nairobi All Share closed -1.71 points to close at 165.63. Nairobi NSE20 fell 26.76 points to close at 3152.17. Equity turnover clocked 498.634m.

Limuru Tea bucked the downside market price action and traded 127,100 shares worth 69.905m all at 550.00 +10% the daily maximum.

Limuru Tea reported a FY 2017 EPS loss of [9.22] but this share is not about earnings but about the net Asset Value.

Safaricom eased -1.76% to close at 27.75 and traded 5.44m shares worth 151.516m. Medium Term Investors should stay bright eyed and bushy tailed if we correct any lower.

Nation Media slid -2.51% to close at a 19 month low of 77.50.

Equity Group corrected -1.64% to close at 44.75 and traded 3.275m shares worth 146.98m. Banks have been under sell-side pressure since there has been no substantive modification in the rate cap and international investors downsize in front of what they view as an adversarial approach to the IMF at a time when an IMF safety Net is worth its weight in gold in perception terms.

KenGen closed unchanged at 6.55 and traded 1.080m shares.

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