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Law Capping interest rates
Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:[quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] Government stiff hand now visible with the last few failed auctions.. The NSE rally is nigh http://www.businessdaily...798768-c6waci/index.html
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 10/26/2015 Posts: 151
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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[quote=Last year dps for these three banks was as follows: 1.Equity-2.00 2.Coop-0.80 3.Kcb-2.00 But due to the interest cap,im not sure if the dps will be the same. Can someone plis give a projection of the likely scenerio.Will dps be the same,decreased,increased or none? Towards the goal of financial freedom
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Rank: New-farer Joined: 5/19/2014 Posts: 68 Location: Migori
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Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. Learning to sit on my hands
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. ,Behold, a sower went forth to sow;....
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. thanks guys for your input.lets hope for the dps to remain the same alafu maybe next year a slight drop. Towards the goal of financial freedom
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. Have the profits gone down 50% in 2016??
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 4/23/2014 Posts: 911
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mlennyma wrote:This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling For the law makers to even consider changing it, they must first be debt free and with little use for any future debts, and this I don't see. The bankers made their worst mistake by allowing this law to become a law, despite the CBK governor informing them what was going on and the consequences that they faced. “You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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HaMaina wrote:mlennyma wrote:This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling For the law makers to even consider changing it, they must first be debt free and with little use for any future debts, and this I don't see. The bankers made their worst mistake by allowing this law to become a law, despite the CBK governor informing them what was going on and the consequences that they faced. The banker's didn't allow it, but rather the president pushed it.. Though hearing Dr Mwangi on Citizen last night made me realise that the exchange bar is right.. The law will be amended after September 2017
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. Have the profits gone down 50% in 2016?? To play this market, you have to have a stand. Thus my approach. 2016 will be shaken. And thus why preservation will take root from. Hence haircuts on dividends now or in near future. If you are playing with fire, you have to provide for burns. So do not ask why I am carrying a bandange and a can of that blue liquid. Its called being a wise fire player. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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HaMaina wrote:mlennyma wrote:This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling For the law makers to even consider changing it, they must first be debt free and with little use for any future debts, and this I don't see. The bankers made their worst mistake by allowing this law to become a law, despite the CBK governor informing them what was going on and the consequences that they faced. This law can't be pegged on current parliament, majority are going home by August,i foresee an amendment in this year's finance bill "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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Insane volume on the financials large caps today BBK 11M, COOP 7M.. https://www.nse.co.ke/ma...tatistics&Itemid=190
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 5/21/2014 Posts: 184
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mlennyma wrote:HaMaina wrote:mlennyma wrote:This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling For the law makers to even consider changing it, they must first be debt free and with little use for any future debts, and this I don't see. The bankers made their worst mistake by allowing this law to become a law, despite the CBK governor informing them what was going on and the consequences that they faced. This law can't be pegged on current parliament, majority are going home by August,i foresee an amendment in this year's finance bill Even incoming mps will neither be debt free nor without need for future debt. There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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actuarywahisa wrote:mlennyma wrote:HaMaina wrote:mlennyma wrote:This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling For the law makers to even consider changing it, they must first be debt free and with little use for any future debts, and this I don't see. The bankers made their worst mistake by allowing this law to become a law, despite the CBK governor informing them what was going on and the consequences that they faced. This law can't be pegged on current parliament, majority are going home by August,i foresee an amendment in this year's finance bill Even incoming mps will neither be debt free nor without need for future debt. No better time to invest in the NSE, especially large cap financials
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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muandiwambeu wrote:obiero wrote:muandiwambeu wrote:obiero wrote:maka wrote:obiero wrote:obiero wrote:obiero wrote:sparkly wrote:obiero wrote:MaichBlack wrote:obiero wrote:muandiwambeu wrote:[quote=Ebenyo][quote=obiero]I told you guys to sell off bank stocks in 2014. Luckily made it out of some major holdings in good time.. but a big percent of your portfolio is still in banks! so, what do you expect to be a fair hair cut on obieros portfolio as a result of kamwanaas house attempt to please Wanjiku. what will be the overall industries' hit in percentage. my fair guess from my lender's perspective (16-14.5)/(16*0.5)*100=18.75% conservetively thieves. COOP & HF will come out strongest in this.. Too little meat to be bitten out from the two. Plus HF has never been strong on deposits being only licensed to have current accounts a few months ago!! HF will have the least interest expense of all listed lenders Hey @Obiero. Bill not signed. And please note I did not put the word 'yet' at the end. Its bound to be signed on Monday 29th Aug 2016 The bankers will visit statehouse with big brown envelop and this story will be forgotten. Smaller banks will fold Here we are... Family & Sidian, then Ecobank collapses 9 branches http://www.businessdaily...6506-316lohz/index.html[/quote] And now BoA closes 12 branches. Sad state of affairs http://www.businessdaily...2926-jp394sz/index.html[/quote] Na bado... Mola awe nasi Mola usaidia mwenye kujisaidia. Kwa hao wengine maisha naiwe ngumu kama steel balls, sio mimi nasema mabenki yamekaa kindete na mapeso yao. Eti loan siku hizi requirements nikama hapa chini 1. Credit worthnes history of your great grand father and mother 2. DNA clearance certificate that your gene has not been thogothaniad(adulterated) 3. You have more money than you personally require. 4. You are under 50yrs and of clean insurable health status . . . . . . Endless list Then lastly By exemption. I foresee no rebounce anywhere near before the big fishes eat all small fishes and rawats to extinction. Pesa ndio hakuna. Ng'ooooooo ng'o  @muandiwambeu all is not lost, now is the best time to get select stocks To hell with the race,there are better things to ride than cars and shares.  So, what do I buy with? My hands or you will afford me some kamchango @obiero.  This bear run has not had its fill. And will be about for a well. Better know that, a bull is unsustainable with the prevailing cash drought. Selling Tom to Buy Dick and then selling Dick to buy Harry is purely fundamental driven and tactical. Shorting in otherwords will only fuel further capitulation. Welcome President Donald Trump. We love you so much. We come in masses to thank you for your election. And now that you made it, lend me and Obiero, brother Millie some dollars, tutalipa polepole . we are very enterprising and good at the art of dealing too. It would be a miracle for the year to close without a merger or closure http://www.businessdaily...807494-q8d8kz/index.html
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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obiero wrote:actuarywahisa wrote:mlennyma wrote:HaMaina wrote:mlennyma wrote:This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling For the law makers to even consider changing it, they must first be debt free and with little use for any future debts, and this I don't see. The bankers made their worst mistake by allowing this law to become a law, despite the CBK governor informing them what was going on and the consequences that they faced. This law can't be pegged on current parliament, majority are going home by August,i foresee an amendment in this year's finance bill Even incoming mps will neither be debt free nor without need for future debt. No better time to invest in the NSE, especially large cap financials i hope Q1 brings up the panic for me to buy "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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mlennyma wrote:obiero wrote:actuarywahisa wrote:mlennyma wrote:HaMaina wrote:mlennyma wrote:This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling For the law makers to even consider changing it, they must first be debt free and with little use for any future debts, and this I don't see. The bankers made their worst mistake by allowing this law to become a law, despite the CBK governor informing them what was going on and the consequences that they faced. This law can't be pegged on current parliament, majority are going home by August,i foresee an amendment in this year's finance bill Even incoming mps will neither be debt free nor without need for future debt. No better time to invest in the NSE, especially large cap financials i hope Q1 brings up the panic for me to buy Yesterday's combined turnover on financials was in excess of 30m shares.. Smart moves already in play
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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