Rank: Chief Joined: 8/4/2010 Posts: 8,977
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guru267 wrote:@hisah these facts you are stating about the global economy are true but misleading.....
The East African economy is in a boom phase whether US is slow or not....
There's oil in uganda(note equity and KCB want a footprint in uganda) and renewable energy in kenya (note the rally in both KPLC and kengen) and theres also IT in rwanda.. These coupled with huge budgets and housing development i'm Hard pressed to find any signs of a recession in these markets....
I guess i can say we will be africa's CHINA!! I'm not refuting the fact that KE or EA fundamentals are far better than the global outlook, but one fact about market bull rallies is healthy buy volume, which ceased since June 2010. I was expecting it to come back after a positive referendum, but still nowhere to be seen. That means fund money is still cautious. Until I see that volume back, I'm neutral for now. Just waiting for unga, scom at or below 4.50, KK at or below 8 and CIC OTC.
US Fed bank FOMC dovish meeting statements today do not support a global bullish outlook. Unless EA trades amongst itself or Africa 100%, exports will dip widening the trade deficit. I'd like to see how NSE deals with the likely 10-20% global stocks correction from their current positions. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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