hisah wrote:Last trade day for the month is tomorrow. None of the financial members have hinted at releasing their HY results. The roller-coaster ride is coming. Buckle up. I'm still a big bear vs banks.
I am also light on banks. The market is not pro-banks at the moment. Even as a large shareholder in tier 1 banks, what would it profit me to obtain a dividend yield of 7% while I bear a mortgage, corporate loan or LC at 18% per annum. Something is broken in our financial system. High interest rates are the root cause leading to NPL spike and the movement in FD rates in Oct 2015 still has its impact to date since most banks booked high cost deposits to rates in the range of 21% p.a.. This liquidity strain is what caused the collapsed lenders to close shop. On the regional front, Uganda, Burundi & South Sudan are shaky; for lack of a better verb. It doesnt look good, at all..
KQ ABP 4.26