Wazua
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Madness at the NSE
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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slick wrote:wukan wrote:NSE 20 has finally broken sub 2K to close at 1958
In the meantime FED has gone crazy and thrown in the mother of all QEs Should CBK rescue our stock market and directly or indirectly buy stocks?Well first world central banks are doing so.Swiss and Japanese Central Banks are directly buying stocks with Bank of Japan buying Japanese ETFs and the Swiss Central bank buying US stocks like Facebook and Apple among others.The Fed was funding the Wall Street banks to buy stocks ever since GFC from their QE programs.Now the Fed is being more direct now.Through their recently launched program Primary Dealer Credit Facility (PDCF) the Fed is taking the large cap US stocks as collateral for repo loans to wall street primary dealer banks and hedge funds.Considering these loans are being rolled over when they mature,the Fed is keeping these stocks on their balance sheet thus essentially buying these stocks.Much of the rally in Wall Street in recent days has been attributed to this Fed intervention in the stock market.There is talk that Fed should outright buy US stocks.Its a banana republic style intervention nonetheless equities are rising due to this Maybe Opus Dei should launch a similar facility here and rescue our equities and take Safaricom stock to 100 and KCB stock to 200?  Kenya needs more USD/Greenback. If we can be able to get just $5bn free economic fortunes will change drastically. Printing ksh will be catastrophic. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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slick wrote:wukan wrote:NSE 20 has finally broken sub 2K to close at 1958
In the meantime FED has gone crazy and thrown in the mother of all QEs Should CBK rescue our stock market and directly or indirectly buy stocks?Well first world central banks are doing so.Swiss and Japanese Central Banks are directly buying stocks with Bank of Japan buying Japanese ETFs and the Swiss Central bank buying US stocks like Facebook and Apple among others.The Fed was funding the Wall Street banks to buy stocks ever since GFC from their QE programs.Now the Fed is being more direct now.Through their recently launched program Primary Dealer Credit Facility (PDCF) the Fed is taking the large cap US stocks as collateral for repo loans to wall street primary dealer banks and hedge funds.Considering these loans are being rolled over when they mature,the Fed is keeping these stocks on their balance sheet thus essentially buying these stocks.Much of the rally in Wall Street in recent days has been attributed to this Fed intervention in the stock market.There is talk that Fed should outright buy US stocks.Its a banana republic style intervention nonetheless equities are rising due to this Maybe Opus Dei should launch a similar facility here and rescue our equities and take Safaricom stock to 100 and KCB stock to 200? We just need to competitively devalue Kshs and blame it on corona. We will attract a lot of the QE infinity funds looking a for new home with our young population as a selling point.
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Rank: Member Joined: 6/1/2017 Posts: 288
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Ericsson wrote:slick wrote:wukan wrote:NSE 20 has finally broken sub 2K to close at 1958
In the meantime FED has gone crazy and thrown in the mother of all QEs Should CBK rescue our stock market and directly or indirectly buy stocks?Well first world central banks are doing so.Swiss and Japanese Central Banks are directly buying stocks with Bank of Japan buying Japanese ETFs and the Swiss Central bank buying US stocks like Facebook and Apple among others.The Fed was funding the Wall Street banks to buy stocks ever since GFC from their QE programs.Now the Fed is being more direct now.Through their recently launched program Primary Dealer Credit Facility (PDCF) the Fed is taking the large cap US stocks as collateral for repo loans to wall street primary dealer banks and hedge funds.Considering these loans are being rolled over when they mature,the Fed is keeping these stocks on their balance sheet thus essentially buying these stocks.Much of the rally in Wall Street in recent days has been attributed to this Fed intervention in the stock market.There is talk that Fed should outright buy US stocks.Its a banana republic style intervention nonetheless equities are rising due to this Maybe Opus Dei should launch a similar facility here and rescue our equities and take Safaricom stock to 100 and KCB stock to 200? Kenya needs more USD/Greenback. If we can be able to get just $5bn free economic fortunes will change drastically. Printing ksh will be catastrophic. Actually the Fed has setup currency swap lines with other major central banks like the European Central Bank,Bank of Japan,Bank of England,Bank of Canada,central banks in Australia, Brazil, South Korea, Mexico, Singapore, Sweden,Denmark, Norway, and New Zealand for these banks to hand over their local currencies to the Fed and Fed giving back USDs to re-liquify them with Greenbacks.These other central banks are creating new local currency and exchanging then with newly created Fed dollars.The Fed is only doing this with its allies.Obviously,Russia and China are not in the club for this but Moscow has largely de-dollarized so not a major problem for Putin and Beijing has over 1 trillion of USD denominated bonds as a buffer  https://www.bloomberg.co...dditional-central-banks
Apparently also our CBK isnt in the club too.KES just not important enough to qualify for the swap thus we shall continue to suffer dollar shortage. Yes for now USD remains King relative to other fiat currencies despite Fed printing trillions but inevitably the USD will fall if the Fed keeps the printing press hot with trillions of extra liquidity.I wont be holding USD for the long term but currently USD is the "best asset" to hold Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Veteran Joined: 7/8/2008 Posts: 947
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Monk wrote:murchr wrote:VVS --- BOC Kenya? I'm curious too. I know this might sound distasteful to some, but with medical gases currently in high demand, is this pandemic a windfall for them? Medical gases were a small part of their business. The increase in the medical gases will not make up for the losses from the industrial gases. Also there is a narrow window to make money from medical gases and if BOC isn't ready the oppurtunity disappears ... with the Kenyans who will pass away as well. BOC isn't well positioned to capitalize on this oppurtunity.
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Rank: Veteran Joined: 7/8/2008 Posts: 947
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slick wrote:Ericsson wrote:slick wrote:wukan wrote:NSE 20 has finally broken sub 2K to close at 1958
In the meantime FED has gone crazy and thrown in the mother of all QEs Should CBK rescue our stock market and directly or indirectly buy stocks?Well first world central banks are doing so.Swiss and Japanese Central Banks are directly buying stocks with Bank of Japan buying Japanese ETFs and the Swiss Central bank buying US stocks like Facebook and Apple among others.The Fed was funding the Wall Street banks to buy stocks ever since GFC from their QE programs.Now the Fed is being more direct now.Through their recently launched program Primary Dealer Credit Facility (PDCF) the Fed is taking the large cap US stocks as collateral for repo loans to wall street primary dealer banks and hedge funds.Considering these loans are being rolled over when they mature,the Fed is keeping these stocks on their balance sheet thus essentially buying these stocks.Much of the rally in Wall Street in recent days has been attributed to this Fed intervention in the stock market.There is talk that Fed should outright buy US stocks.Its a banana republic style intervention nonetheless equities are rising due to this Maybe Opus Dei should launch a similar facility here and rescue our equities and take Safaricom stock to 100 and KCB stock to 200? Kenya needs more USD/Greenback. If we can be able to get just $5bn free economic fortunes will change drastically. Printing ksh will be catastrophic. Actually the Fed has setup currency swap lines with other major central banks like the European Central Bank,Bank of Japan,Bank of England,Bank of Canada,central banks in Australia, Brazil, South Korea, Mexico, Singapore, Sweden,Denmark, Norway, and New Zealand for these banks to hand over their local currencies to the Fed and Fed giving back USDs to re-liquify them with Greenbacks.These other central banks are creating new local currency and exchanging then with newly created Fed dollars.The Fed is only doing this with its allies.Obviously,Russia and China are not in the club for this but Moscow has largely de-dollarized so not a major problem for Putin and Beijing has over 1 trillion of USD denominated bonds as a buffer https://www.bloomberg.co...dditional-central-banks
Apparently also our CBK isnt in the club too.KES just not important enough to qualify for the swap thus we shall continue to suffer dollar shortage. Yes for now USD remains King relative to other fiat currencies despite Fed printing trillions but inevitably the USD will fall if the Fed keeps the printing press hot with trillions of extra liquidity.I wont be holding USD for the long term but currently USD is the "best asset" to hold What long term. If this madness continues long term no asset will survive! USD is the only currency to hold for now.
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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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tony stark wrote:Monk wrote:murchr wrote:VVS --- BOC Kenya? I'm curious too. I know this might sound distasteful to some, but with medical gases currently in high demand, is this pandemic a windfall for them? Medical gases were a small part of their business. The increase in the medical gases will not make up for the losses from the industrial gases. Also there is a narrow window to make money from medical gases and if BOC isn't ready the oppurtunity disappears ... with the Kenyans who will pass away as well. BOC isn't well positioned to capitalize on this oppurtunity. An excellent point. I have not looked at BOC in ages. For those who are interested they should compare sales Industrial Gases vs Medical Gases. The former must have crashed with the closure of factories, etc while the latter may see a modest increase. 2020 is likely to be tough on BOC just it will be on many firms. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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Meanwhile, NSE Bulls got served with a 21% shave in March. Last time such a close shave was administered was in February 2009.  @SufficientlyP
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Sufficiently Philanga....thropic wrote:Meanwhile, NSE Bulls got served with a 21% shave in March. Last time such a close shave was administered was in February 2009. Emerging markets had $83 billion capital outflow in March despite being largely unscathed by the virus. That first wave sell-off is financial in nature (liquidations to cover losses/shortages/margin calls elsewhere). The epicenter is now shifting from Europe to the US having done damage in most of Asia earlier. By end of April, the focus will slowly but surely land on EMs/FMs...for a sneak peak of how devastating that will be have a look at SA and India (currencies, debt, trade and stock markets). Second wave will be economic in nature (unemployment, bankruptcies, food shortages etc) which increases the odds of civil unrest during this phase. By the end of Q2 if the global infection levels subside, then countries will begin to take stock of the damage inflicted. For heavily indebted countries, that will quickly usher in a debt crisis of its own consequences (low taxes, low fx reserves, increased debt burden et al). Without a debt moratorium or a wide ranging debt relief program by end of the year, then an L-recovery is the more likely scenario for KE. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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NSE Bulls to reclaim 2000pts on the NSE20 today. But negative figures on the Non Farm Payroll (NFP) due in an hours time may just spoil the party going forward  @SufficientlyP
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