Mzee Kpoli,

Thanks for your advise. Unfortunately I have made of my mind irrespective of half year 19% Pre-tax profit. That does not excite me as my benchmark is 30% minimum which some other banks
have achieved like Equity etc.

I will use the rights money for other opportunities especially the shares I do not have or have very little units like KPLC, SCB, more ARM, KenolKobil etc.
As a non resident foreigner I do not want to go through the stress of trading the rights.
Even if the Lion roar later, my previous holdings will also roar, hakuna matata.

Best Regards

Uganda banks have capacity to support oil development


By Daily Monitor Reporter


Kampala


A top bank official said recently that Ugandan banks have both the financial and requisite experience to participate in the financing of the ongoing petroleum development.

While commenting in Kampala about a deal in which United Bank for Africa (UBA) joined hands with Stanbic IBTC to raise $70 million for financing a Nigerian gas pipeline, Ms Margaret Mwanakatwe, the UBA managing director said: “Giving banks in Uganda an opportunity to participate in petroleum development , would strengthen their capability and technical competence to undertake even bigger projects not only in oil but also infrastructure development.

She said over the last decade, financial institutions have proved their capacity to support infrastructure development in terms of financing and technical support. She cited the recently concluded syndicated $100 milliom (Shs225 billion) facility for MTN Uganda, that was raised by a consortium of Ugandan banks including UBA, Stanbic, Barclays and Standard Chartered Bank among others as proof of their competence and ability.

Uganda oil finds trigger land grab near fields, say MPs

From Daily Monitor

The discovery of oil in western Uganda has prompted a land grab around the oil fields, dispossessing impoverished local communities and providing a potential trigger for conflict, members of parliament from the area said on Friday.

East Africa’s third largest economy is basking in a fresh wave of economic vitality as global investors rush in to tap opportunities in its budding oil industry.

Commercial hydrocarbon deposits were discovered in the Albertine Rift Basin close to the country’s border with the Democratic Republic of Congo in 2006 and reserves are estimated at 2 billion barrels.

MP Stephen Biraahwa Mukitale told Reuters there was a rush by powerful and influential individuals to acquire large tracts of land in the area.

“Land in the whole of the Albertine Graben is mostly customarily owned but powerful individuals speculating on its value are trying to survey and register large chunks of it in their names,” he said.

Recipe for conflict

“I have warned that this is a recipe for conflict. The government must formally and openly survey and demarcate land in the whole area.”

The scramble for land, he said, is consolidating ownership in a few individuals and could provoke landless and impoverished people in the region to sabotage oil exploration and production in future.

Tomson Kyahurwenda, another legislator from the region, told Reuters the land grab could unsettle the region.

“People go to Kampala and acquire individual titles and you find one person with nearly ten titles,” he said.

“The government policy is that land in that area belongs to the communities,” Matia Kasaija, junior internal affairs minister, told Reuters. Kasaija did mention any possible action against grabbers.

Tullow Oil, which has made the most discoveries in the region, expects to start limited commercial petroleum production in the last quarter of 2011. Daily crude output is forecast to peak at about 200,000 barrels by 2015.
Tullow is awaiting approval of its proposed purchase of Heritage Oil’s exploration assets in Uganda. Approval of the deal, though, has stalled over a tax dispute pitting Heritage against the Ugandan government

Market volume rose to HK$69.89 billion from HK$54.27 billion Thursday.

Analysts said expectations of strong first-half corporate results during the coming earnings season are likely to propel the market higher next week.

Mark To, head of research at Wing Fung Financial, said he expects the Hang Seng Index to rise above 21,000 next week. 'The recent rise suggests risk-averse fund flows have been returning to the stock market,' he said.

Francis Lun, general manager at Fulbright Securities, said the higher market volume reflected investor confidence in the earnings outlook.

'Stronger-than-expected U.S. data and corporate results will be positive catalysts for the local index next week,' he said.

Overnight, the Dow Jones Industrial Average rose 201.77 points, or 1.99%, to 10322.30, its biggest one-day gain since July 7 and its highest close since July 15, after a number of heavyweight U.S. companies beat earnings expectations and U.S. existing home sales data weren't as weak as expected.

Chinese lenders were among the day's biggest gainers in Hong Kong, tracking gains in regional peers.

ICBC rose 1.2% to HK$5.89, China Construction Bank gained 1.4% to HK$6.59 and Bank of China added 0.7% to HK$4.15.

Agricultural Bank of China jumped 5.5% to HK$3.48 after a Hong Kong stock exchange disclosure said Morgan Stanley had raised its stake in the Chinese lender's Hong Kong-listed shares by 1.03 percentage points to 16.31%.

'The market is getting excited on the bank sector, due to the hope for policy loosening, the removal of technical overhang (e.g. initial public offering), and the strong first-half earnings,' Bank of America-Merrill Lynch analyst Winnie Wu said.

However, she said she maintained a relatively cautious stance on China's banks due to concerns about long-term asset-quality risks and the short-term credit costs related to local government funding vehicles.

Hong Kong Exchanges rose 2.3% to HK$126.80 because of the higher market volume, though Credit Suisse lowered its target price on the bourse operator to HK$149.00 from HK$154.00.

Credit Suisse expects Hong Kong Exchanges, which will announce its results Aug. 11, to post a 20% decline in second-quarter net profit to HK$1.09 billion due to weaker market turnover during the period.

The Hang Seng Index rose 133.48 points, or 0.6%, to 20,973.39 after falling to an intraday low of 20,824.05 during the session. Market volume fell to HK$53.93 billion from HK$54.87 billion Monday.

Analysts said the blue-chip index is likely to trade between 20,500 and 21,000 this week as investors await key corporate earnings, including results from banking heavyweight HSBC and its local unit Hang Seng Bank, both due Monday.

The market got a boost after the Dow Jones Industrial Average rose by 0.97% to 10,525.43 Monday, its highest close since May 17, because of a rosy fiscal year forecast from shipping giant FedEx and better-than-expected U.S. new home sales for June.

HSBC rose 1.7% HK$78.85, Standard Chartered Bank gained 3.0% to HK$224.60 and Bank of East Asia was up 1.9% at HK$29.65 because of optimism over their first-half earnings.

Deutsche Bank said in a report Tuesday it expects the first-half net profit of Hong Kong banks to rise by an average of 19% from a year earlier, boosted by strong first-quarter earnings due to a strong recovery in fee income.

Chinese lender Agricultural Bank of China rose 0.3% to HK$3.51. The Big Four bank is now 9.7% above its Hong Kong initial public offering price of HK$3.20.

Bucking the trend, Hong Kong developers fell on profit-taking, with the property sub-index falling 0.2% to 27,381.87, after rising 1% Monday.

Cheung Kong fell 0.4% to HK$93.75 after rising 1.2% in the previous session and Sun Hung Kai fell 0.3% to HK$114.50 after rising 0.8%.

'Investors started to lock in profit as property stocks have largely reflected expectations a site in a government land auction will fetch a handsome price tag,' said Edward Fung, head of research at Kim Eng Securities.

The Hong Kong government will auction a site Wednesday at Mount Nicholson Road on The Peak, which is designated for development as a luxury residential property.

'We expect strong bidding interest, as developers had applied to get this site over 10 times, with any forecast-beating result a boost to developer shares,' UBS said in a report Tuesday. It said the market expects the site to be sold for HK$8 billion to HK$11 billion compared with UBS' estimate of HK$9.25 billion.

US market performed strong on Monday, driven local market to open 197 points higher on Tuesday, however, gains was narrowed afterwards due to the drop in A-share market. Hang Seng index finished the day 44 points higher at 21,457. H-share index dropped 60 points to 12,120. Market turnover rose to HK$68.3bn. HSBC (0005.HK) added 1.8% as its 1H10 attributable profits surged 102% to US$6,763mn, in-line with market expectation. Hang Seng (0011.HK) fell 0.8% despite the 8.0% yoy growth in interim profits, since market worries future pressure on narrowing interest spread. Notwithstanding the 39 times yoy jump in interim profits, Poly Hong Kong (0119.HK) slid 0.8%. Macau gambling revenue rose 70% yoy, triggered gambling plays to surge, Galaxy (0027.HK) and Melco (0200.HK) climbed 3.5% and 1.5%.

China and HNK shares ended higher Friday led by conglomerate Hutchison Whampoa, which leapt nearly 10%, and property developer Cheung Kong after the two Li Ka-shing-controlled companies reported a strong first-half earnings performance.

The blue-chip Hang Seng Index rose 127.08 points, or 0.6%, to 21,678.80 after trading between 21,456.74 and 21,722.38. Cheung Kong and Hutchison accounted for 64.57 points, or just over 50%, of the session's gains. Over the week, the index rose 3.1%.

Market volume totaled HK$62.90 billion, up from HK$60.90 billion Thursday.

Analysts said they expect the index to trade between 20,800 and 22,500 next week, adding investors are awaiting U.S. non-farm payrolls data later Friday for trading cues, particularly after a surprise rise in weekly U.S. jobless claims reported Thursday stoked risk aversion.

'We are on the way to revival but the path is not smooth,' said Peter Lai, director at DBS Vickers, adding the first-half performance of Hutchison Whampoa and Cheung Kong boosted the local market today.

'Many investors thought 3G wasn't good for Hutchison but it turned out to be successful. This is undoubtedly positive for Hutchison, which has been a big laggard,' he said.

Telecommunications-to-property conglomerate Hutchison Whampoa soared 9.7% to HK$58.20 after it reported a 12% increase in first-half net profit to HK$6.45 billion, beating market expectations of HK$4.51 billion, and said its third-generation mobile-phone business was finally on track to make a positive contribution to its full-year results on an earnings before interest and tax basis.

Hutchison's biggest shareholder and Li's property flagship, Cheung Kong Holdings, closed 3.9% higher at HK$100.40 after reporting a 4% rise in first-half net profit to HK$11.92 billion, boosted by higher contributions from property sales and Hutchison Whampoa.

In contrast, electrical appliance retailer GOME slumped 12% to HK$2.40 upon resuming trade after being suspended Thursday. Linus Yip at First Shanghai said the company's outlook was more uncertain after Shinning Crown, a firm controlled by GOME founder Huang Guangyu, sent a letter asking GOME to cancel some decisions approved at a May 11 meeting which granted the company a mandate to issue new shares. Shinning Crown also proposed a resolution to remove Chairman Chen Xiao and executive director Sun Yi Ding.

Huang is serving a 14-year prison sentence in China on charges of insider trading, illegal business dealings and bribery. The Shinning Crown letter marks the third time Huang has attempted to wrest clout from current management and U.S. private-equity firm Bain Capital.

Bank of America Merrill Lynch maintained its buy recommendation on GOME with a target of HK$3.00, saying: 'We believe it could be a very painful process, but GOME appears to move in the right direction in terms of corporate governance, and the board should continue to act in the best interests of shareholders.'

STOCKS VS REAL ESTATE ?

If you say stocks is the best then you are wrong

If you say land is the best then you are wrong


If you say mixture of stocks and real estate then that is balanced and fair.

Real State
Look beyond plots, think of developing your land for rent to sell at a premium. Buy dipilated building renovate rent to appreciate and sell at a premium.

Stocks
Look at money and capital market in general. So split your investment into savings (Ksh / forex), bonds, fixed deposit, treasury bills.

It is also good if you can also invest in other markets, to leverage your risk.
My local bourse (Nigerian Stock Exchange
is current in a basic mess. Beyong global conomic meltdown first scandal in the financial sector , second accuusation of fraud and consequent removal of the CEO of Nigerian Stock Exchange. Those that depended on Nigerian bourse
for years are in big trouble. Handful of us that diversified to other markets are luckier as the impact is minimal.

Just as you should not be married to a particular counter, 21st century equity investor should not be married to a particular stock exchange. Things are changing we need to change with the changing times.

@Chief Pkoli,

For me this year my best returns or permit to say growth in my portfolio (as I have not invested any dime in stocks yet)are :-

(i) Kenya
(2) South Africa www.psgonline.co.za
(3) Ghana www.databankgroup.com
(4) Botswana www.stockbrokers-botswana.com

My home country (Nigeria) www.afrinvestwa.com is a distance worst world wide.

My interest in the pearl of Africa (Uganda) is driven by the fact that by providence(as we could not afford prohibitive real estate prices of our dear Nairobi) my family have gotten a plot there to build a retirement home which will provide roof over our heads instead of hotel bills. The next question is what about food on our tables in Kampala ?
Starting early to invest for stocks specifically to accumulate dividends comes to mind. Hence the need to open CDSC account when next a visit Uganda. Mombasa port in Kenya is what Uganda depends on.


For a Kenyan, if you invest in Ugandan bourse
you are not really investing outside Kenya as East African Economy is tied to the apron strings of Kenya and invariably land logged small Uganda depends on Kenya. Most Kenya stocks are cross listed in Uganda.

In west Africa the story is diffeent, smalleer Ghana bourse is not directly dependent on Nigeria bourse as there are no cross listed stocks either way. Ghana has Tema port while Nigeria has Apapa port, so they have different economic models.

I think you are aware Ghana has a better managed economy than her big brother Nigeria.

‘Investment to grow despite terror attacks’



Kampala


Investment management firm PineBridge anticipates more investments in Uganda despite the July 11, bomb blasts that struck Kampala. Mr Jonathan Stichbury, Pinebridges’ chief executive told Daily Monitor the firm had received no concern from investors about their investments in the country despite the incidents that could have been of great concern. He attributed investor confidence to Uganda’s positive economic growth, which is seen as the key attraction.


Bombing tragedy
Mr Stichbury said: “Investment is about assessing risks as well as the potential reward. We believe that the bombings were a tragedy and not necessarily positive for investor sentiment, but the positive thing is that Uganda’s economy is doing well.” PineBridge Investments formerly AIG Investments, is an asset management and advisory company specialising primarily in pension funds.

It’s one of the largest players in East Africa managing assets of about Shs2 trillion.
The money managed is enough to build at least 4,000 modern secondary schools. Mr Stichbury said the pending reforms in Uganda’s pension sector, which seek to cease the monopoly of National Social Security Fund and the Public Sector Pension Scheme will be supportive to the growth of the pension business.


Growing economy
With the discovery of oil and other natural resources, he anticipates that the economy will even do better. “The economy is doing well and expanding and we will see more foreign investments due to oil discovery, relatively stable interest rates and low inflation rates,” he added.

PineBridge plans to evaluate the viability of any of the companies in Uganda’s oil industry which will list on the stock exchange, with keen interest to invest. Tullow Oil Plc the United Kingdom based company exploring oil in Uganda plans to list on the exchange before the end of this year.