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Stocks/ Security and elections 2013.
tyjayden
#1 Posted : Thursday, October 11, 2012 7:48:01 PM
Rank: New-farer

Joined: 9/12/2012
Posts: 13
Am happy the market is currently doing well, the index is almost 4k and selected stocks are at their best. However will the market be able to ignore investor's dysphoria which comes with elections in Kenya? Am a bit concerned with the security situation in Kenya bearing in mind the new threats posed by terrorism which was absent during the last elections in 2007. Intelligence reports indicate that Kenyans are still polarized along tribal Alliances, unsettled IDPs still in camps forms a reserve which can be tapped by malicious politicians to cause chaos incase the votes don't go the way they want. ICC cases have not yet been determined and a aggravated parties still feel justice has not yet been served. Slow police reforms which might not be in place before ballot day, this in itself makes the police force susceptible to being misused. KDF being in Somalia denies the country useful security asset which can be used when other security agencies are unable to maintain law and order. This will be the first election to be held under the new constitution. All that said, how will the market behave?
young
#2 Posted : Thursday, October 11, 2012 8:12:59 PM
Rank: Elder

Joined: 6/20/2007
Posts: 2,076
Location: Lagos, Nigeria
tyjayden wrote:
Am happy the market is currently doing well, the index is almost 4k and selected stocks are at their best. However will the market be able to ignore investor's dysphoria which comes with elections in Kenya? Am a bit concerned with the security situation in Kenya bearing in mind the new threats posed by terrorism which was absent during the last elections in 2007. Intelligence reports indicate that Kenyans are still polarized along tribal Alliances, unsettled IDPs still in camps forms a reserve which can be tapped by malicious politicians to cause chaos incase the votes don't go the way they want. ICC cases have not yet been determined and a aggravated parties still feel justice has not yet been served. Slow police reforms which might not be in place before ballot day, this in itself makes the police force susceptible to being misused. KDF being in Somalia denies the country useful security asset which can be used when other security agencies are unable to maintain law and order. This will be the first election to be held under the new constitution. All that said, how will the market behave?



This is a genuine and logical concern.
But be rest assured the magnitude of chaos will be minimal and the loser will accept defeat.
That is what the two contenders affirm at least.
The electoral commision helmsman look serious
and fair.

Good news the incumbent is not contesting so it is a semi neutral ground like 2002. Also
for now there is no anointed prefered candidate
courtesy of ICC.


I will advise you if the market goes down
take position as you will laugh by late 2013 / early 2014 when the chips are down.
The incoming have to undo the wrongs like IDP,
ethnicity.
ICC ? The world is watching, all wil be well, we pray.

This is a non resident foreigner point of view.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
mnandii
#3 Posted : Thursday, October 11, 2012 8:23:28 PM
Rank: Elder

Joined: 10/11/2006
Posts: 2,304
young wrote:
tyjayden wrote:
Am happy the market is currently doing well, the index is almost 4k and selected stocks are at their best. However will the market be able to ignore investor's dysphoria which comes with elections in Kenya? Am a bit concerned with the security situation in Kenya bearing in mind the new threats posed by terrorism which was absent during the last elections in 2007. Intelligence reports indicate that Kenyans are still polarized along tribal Alliances, unsettled IDPs still in camps forms a reserve which can be tapped by malicious politicians to cause chaos incase the votes don't go the way they want. ICC cases have not yet been determined and a aggravated parties still feel justice has not yet been served. Slow police reforms which might not be in place before ballot day, this in itself makes the police force susceptible to being misused. KDF being in Somalia denies the country useful security asset which can be used when other security agencies are unable to maintain law and order. This will be the first election to be held under the new constitution. All that said, how will the market behave?



This is a genuine and logical concern.
But be rest assured the magnitude of chaos will be minimal and the loser this time will accept defeat.
I will advise you if the market goes down
take position as you will laugh by late 2013 / early 2014 when the chips are down.
The incoming have to undo the wrongs like IDP,
ethnicity.
ICC ? The world is watching, all wil be well, we pray.

This is a non resident foreigner point of view.

Quite right. 2007 was majorly a failure of functioning institutions which the new constitution seems to be curing.
Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
ChessMaster
#4 Posted : Thursday, October 11, 2012 9:17:58 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
I'm still surprised the market is performing this well. I thought with whats happening on the world level Kenya would be affected.Do you think the market will continue to defy whats happening internationally? Although I'm also of the idea that it might do better because investors might flock to alternative markets like ours.
Uncertainty is certain.Let go
Jamani
#5 Posted : Thursday, October 11, 2012 9:18:32 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
This begs the question(s) what are the consequences to us as investors for a president
1. Uhuru .... or
2. Raila .... or
3. Ruto..... or
4. Kalonzo ....or
5 Musalia... or
6 etc.
whom among the above if elected will make the stock exchange raise immediately
ChessMaster
#6 Posted : Thursday, October 11, 2012 9:45:15 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
Bases on what performance as president and/or investor and consumer confidence in the president?
Uncertainty is certain.Let go
mlennyma
#7 Posted : Thursday, October 11, 2012 9:45:54 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
The market will favour a status quo president thats uhuru,kalonzo,mudavadi,wamalwa but it will be surprised on how to judge raila.
"Don't let the fear of losing be greater than the excitement of winning."
ChessMaster
#8 Posted : Thursday, October 11, 2012 10:02:29 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
I can see the logic in that. Assuming raila won't get in who do you think can make the market perform better or worse and why?
Uncertainty is certain.Let go
Jamani
#9 Posted : Thursday, October 11, 2012 10:08:43 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
mlennyma wrote:
The market will favour a status quo president thats uhuru,kalonzo,mudavadi,wamalwa but it will be surprised on how to judge raila.


My thinking i might be wrong as i think the market might shrink on Uhuru/Ruto presidency for a while as they wait to see if there will be a backlash from the western countries (sanctions).
I agree with your view about a Raila presidency and I also think this might be the case for Kalonzo... on status quo it might favour Musalia. Though Personally I cannot vote for him.
hisah
#10 Posted : Friday, October 12, 2012 7:32:09 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
As long as those starring on the ICC list don't attain the high seat, Mr Market's sentiments will remain intact. A Mudavadi win will likely be more bullish.
If you like studying patterns, one can clearly see that former VPs end up as KE presidents. If MK was to be upfront, he'd endorse Musalia for both political & economical stability. At a time when KE & EA have discovered potential hydrocarbons as well as other mineral resources, the president needs to be familiar with Land Economics. And Musalia has that in hand. He also has a calm demeanour like MK. That's what my political crystal ball is showing me... Godspeed to KE smile

Update - forgot to put reference - http://www.whoswho.co.ke/musalia-mudavadi
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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