This is a short-term fall that is to be expected given the usual emotional buyers and sellers we have in the NSE.

I forecast PAT at 20% higher in 2009 vs 2008 and around 40% in 2010 vs 2009.

Ask yourself one question,if you were offered KCB/BBK/DTB/NIC or Equity shares today to hold until 2011,which stock would you bet to give you 100% profit over that period?

www.mjengakenya.blogspot.com

I agree with Mainat's prediction that Equity will outperform all other banks in 2010/11 as the fruits of expansion start trickling in.

The results for 2008 were good because of the Safaricom IPO which is unlikely to be repeated soon. Any expectations that 2009 will deliver better results in the absence of an IPO of such magnitude is wishful thinking.

Finally the panic selling is attributable to the perception that the massive branch/regional expansion will drive up operational costs,which was clearly manifested in the half year results,but so was the revenue. In addition,uncertainity on the current drought's impact on non-performing loans,amongst other rumours,are not helping matters.

reithi