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kenol down!,Why?
Rank: Member Joined: 12/7/2006 Posts: 48
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Kenol declared dividend of 3.5sh!!...
despite this,the share price went down by 15sh today (mon)...
WHY????
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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I do not think it went down. There are no sellers at 49/-. And the dividend is a special dividend. The 1Q 2009 will be tough for them in Kenya. Biggest profit growth was in subsidiaries. Kenya is a tough market for them. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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HOW?????????// A Kenyan share cannot be allowed to fall or (rise) by more than 10%...Kes.15 will translate to a whopping 33.33333333333333333333%....Something iko a miss hapa. I wonder what part of brain some people use. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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price can move more than 10% due to announcement. This looks like a trade between books,ie one broker did both ends.... Supposed to be illegal according to NSE trading rules,but who will enforce? Business opportunities are like buses,there's always another one coming Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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@Kula. The announcement was on friday hence shouldn't have any effect today. Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Friday,AFTER close of trading. So,this is the first trading day after announcement,hence 10% rule suspended! Business opportunities are like buses,there's always another one coming Business opportunities are like buses,there's always another one coming
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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Which means if there are no other trades then 52/- is the closing price for today. There are no sellers. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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As stated elsewhere,this is the result of a big block trade that was not available to the rest of the market. Note that the transaction happened right at the start of trading on the PROMPT board. Of course,it raises questions as to why transact at such a low price after such GOOD results! There could be all sorts of reasons e.g. a 'private' deal between two big holders - who are also seeking to limit the commisions they pay on the transaction.
However,note NSE calculates the prices for the day on the basis of Volume Weighting hence closing price will be Kshs 30 or thereabouts. But I do not not expect that there will be sellers at the low price for a while . I expect that the price will rise by the maximum for the next 5 or so trading sessions(assuming there are at least 100 shares available to trade) unless we have other similar deals like today's.
Opportunity calls but few respond.
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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If the VWAP is stuck at around 30/- (coz of the huge trade at 30/-) creates a problem coz the price will be stuck at the level unless there are trades that get the price back to decent (more realistic) levels. At the moment no sellers on Kenol at 52/-. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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Well,the NSE's rules are going to kill trading in Kenol shares for a while coz max rise is 10% IF there are shares to be sold at the 10% limit daily... Or wait till they go ex-div. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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I think the seller was conned but I do not have Kes 45mn otherwise I would have bought them!!! It is a steal at 30/-. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 7/17/2008 Posts: 152
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CMA has decided to suspend the trading of this share until tommorow when then 10% rule will be lifted again to allow the price to correct itself.
@impunity. i hope you have learnt a lesson to spread your investment across various counters. From the way you behaved after kenol fell to kshs.30,i could tell you had a lot interest in this counter,mpaka you interupted martha karua's thread! next time you may not be so lucky.
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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What does CMA do during the day? It should have been able to make a judgement call by close of play on the day based on the fact that this was one of the few trades that went through then. And it looked like a circular trade. Just revising doesn't really help does it? www.mjengakenya.blogspot.comSehemu ndio nyumba
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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@luxel AM not yet recovered but av lost trust in that cartel called NSE....Anyway close to 40% of my portofolio are held there.......Imagine losing 15 Kes in a day when Billionaires like suffering con can hardly gain Kes. 0.05 in a week.!!!!!!!!! Which is more dirty,the pig or Kenyan mp? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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The CMA has suspended trades today & will allow trading (new auction) tomorrow. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 9/25/2007 Posts: 96
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What happens if the price discovery does not succeed today? Does the reference price for 10% revert to Kshs 30?
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Rank: Member Joined: 12/8/2008 Posts: 359
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There is a guy selling 500 at 70/= per share. Surely! Expecting lightning to strike twice perhaps? Or is it sweet revenge 
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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No trades on Kenol today. As for your question... according to the idiots at CMA... yes... it reverts to 30... they did that with eagaads... and eagaads is 'trading' (no trades just the reference price) is stuck at pre-bonus levels of 40 or so. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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First trading since announcement today. Gained 20%,so the 10% rule applies to the first TRADE after announcement,not first DAY after announcement?
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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The 10% refers to the VWAP on the 1st trading day AFTER the announcement e.g. an announcement at 8am (on a trading day) means the reference price is set on that day. BUT an announcement at 5pm (on a trading day)... means the reference price is set at the end of trading on the 1st trading day AFTER the announcement. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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kenol down!,Why?
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