The market has been 'depressed' with heavy selling/offers for many counters despite the good results.

I believe a partial but significant reason is the presence of 'Mutual Funds' & other entities who rebalance their portfolios to account for:

- Lock in gains from price appreciation
- Rebalance sectors
- Take cash out of the NSE for other needs
- A one-off 'Referendoom' cash outflow prior to Aug 2010
- A one-off Euro weakness might cause redemptions

I expect 'new' cash to flow in starting 1 July but in the meantime the sellers predominate. Well, till the end of business today!

Though still rebalancing in the same asset class, I really really think I should sell off my many many KCB shares and buy SCBK.


I've been trying to form the habit of buying companies rather than shares. I liked KCB with the whole regional outlook, 'king of Kenya Shilling', good succession planning, affordable after stock split, my dad banks there, bank of the people and all that...

But I've come to realise I wouldn't dream of opening an account there, and they now represent a lumbering giant.


Now SCBK on the other hand I patronise to a fault. I understand and share their tenets of effeciency, smart with their deposits, tech and business savvy, and I like that they bank people 'above my pay grade'. Apart from their foreign oversight, there are some companies these days that fuss more about their share price more than I do - and SCBK fall in this class.

Heck, nobody's perfect! Just that I think if I could own the whole of KCB or the whole of SCBK, I would choose the latter for the next 5 years... So I think I need to let my cash flow from one to the other.

Cash is an important asset of your portifolio too...

@the deal if you are under 35 years old like i'm sure you are you are wasting time holding cash because it will yield nothing... all one needs to do is invest that money long term and IGNORE short term fluctuations and enjoy dividends

aint i lucky i have both arm and scbk. wow. i bought at 202 and 120 and i thought it was expensive. ha! I target 250 for scbk and 180. 50% gain and that will be a nice 350k.

For those who like to benchmark their portfolio's performance against the NASI and the NSE 20, here are the numbers:

For the period Jan - June (1st half) NASI has gone up 32% while NSE 20 has gained 34%.

It seems I have beaten both (Iam up 70%)- my target was much lower about 40%. Seems Scangroup really made gains above my expectations. I will now sit and wait for 1st half results from the companies before engaging the next gear.

Happy investing!!