I have seen an article in the Business daily, The Global Telecoms revenue will rise to $1.7 Trillions.Is this the sector to watch? They are also talking of the market bracing itself for a cut in interest rates to boost growth.The Oil prices have shot up....$100 a barrel?

KQ will definately have the blunt of it. it closed at 56 last week.The tourism sector has also been hit by the current instability and their Revenue will sure take a nose dive. However,one Nathan Rothschild once said that 'the best time to buy is when there is blood running in the streets'. is this the right time to buy?

AK has been stable for the last few weeks at 24.I am including this stock in my watchlist.

If the current political situation cools off, i am of the opinion that we are going to see icreased activity in the construction industry, roads and so on.This brings ARM into my watch list too.

BBK at 75 for now, it too makes its way into my watchlist

More input please

Wakihia,

Good thinking particularly for ARM.I am afraid fundamentals dont seem to favour Kenya Airways. I heard FLY540 have already acquired 8 new medium range jet to fly the regional route which KQ has more or less monopolised. Remember Uganda airlines (owned by AgaKhan and co and not UG government) is really undercutting them on the Kampala route.The london route is equally tough with the entry of Virgin Atlantic. I really dont know what the way foward is for this company. If you have followed the media articles of late, you surely must have noticed the perenial delays by KQ in all the routes by an avearge of 3 hours. KLM, KQ partner has also lost confidence in JKIA as its regional hub, instead opting to transfer their operations to Dar. And the killer blow is the death of tourism sector!

quote:

I am afraid fundamentals dont seem to favour Kenya Airways. I heard FLY540 have already acquired 8 new medium range jet to fly the regional route which KQ has more or less monopolised. Remember Uganda airlines (owned by AgaKhan and co and not UG government) is really undercutting them on the Kampala route.The london route is equally tough with the entry of Virgin Atlantic. I really dont know what the way foward is for this company. If you have followed the media articles of late, you surely must have noticed the perenial delays by KQ in all the routes by an avearge of 3 hours. KLM, KQ partner has also lost confidence in JKIA as its regional hub, instead opting to transfer their operations to Dar. And the killer blow is the death of tourism sector!

thanks for the insight. i have also noted that the P/E for Kq is 6.31 against an industry average of 19.39. your views have opened my eyes wider!! poor Kq

Do you guys think that these downfalls in stock prices will be permanent or the situation will stabilize with the political situation?

quote:

Originally posted by sajini:
Do you guys think that these downfalls in stock prices will be permanent or the situation will stabilize with the political situation?

I believe the situation will improve once the political situation improves. The market is responding to the situation. For the counters with fundamentals, this is the time to put in some coins.


Got this from a friend in the field...


MARKET CONDITIONS

(A) THE BEAR MARKET

The market can be largely described as bearish (characterized by low prices) but the market was on a positive trend last week owing to the progressing positive signs at the mediation table chaired by Mr. Annan.

This is an extended period for buyers. The index closed at 4986 on Friday 1th 2008. The index at good times hits 6000. Our advice is you buy now.



(B) IPO’s

The delay for the Safaricom IPO is largely due to the political crisis facing the country. The date is likely to be announced after a power-sharing formula is agreed upon. Transcentury and the KPA (Kenya Ports Authority) have expressed interest to float shares at the stock exchange. This will make the market very active.



( C ) Year End Results

Year 2007 was a good year for the financial sector. Banks made massive profits and this will be reflecting in the year-end results expected soon. As you may have noticed, banks are increasing their capital base for growth and expansion. It would be a good bet to buy ‘financials’ before they announce their results

This message has been edited. Last edited by: Ngûnjiri®,