Those bondholders that bought the recently floated bank bonds will be sweating for a while. This is now sheer crime.

This bidless period is going to be a global phenomenon when it checks in.

Is this rally reliable?

KCB is very bold to attempt a rights issue in this environment with all the banking drama. Why come for rights at this time? The tense market can easily assume all is not well internally if you're raising cash in such stormy weather! As seen in another thread I also think buying coop makes more sense now than kcb or equity. I still have issues with member coz Helios sold their gold (equity shares). Why sell this gold to pay for Orange acquisition?

I wish it was that simple, but it's not.

@hisah. Rights issue at this time can cause doubts in the bank

yesterday i reduced significantly my kcb holding, i intend to add abit on the rights thing and wait to add sub rights price

What a market bleeding Friday?

I couldn't agree more. They are paying less dividend than equity and want 10bn from a rights issue. Are the strapped for cash?

Who will want to buy these small firms unless the DD can be done in depth?
I see the current status continuing as is but there may be some takeovers by FOREIGN banks/investors rather than local banks.

Other small banks may be bought by non-banks eg SACCOs...

somebody had a juicy adage a month or so, follow big money, I hope he did not follow with big money to get balkanised big time as well. waiting sub 30/=. the music just stopped without warning.

I can see CBK is willing to offer PPT services to combat the teetering confidence in the banking sector. This is an admission that some bad apples are still lurking around.

Will CBK cut the CBR rate significantly in order to offer a robust support base? If they do so, NSE will celebrate that heavy PPT action. But the side-effects are a weakening KES. Tough choices. S&P KE rating update is coming up this week. Gok will struggle trying to sell the 2nd eurobond from the current events and another negative rating review will also not help at all.

I expect NSE20 to outperform NASI as return of capital rather than return on capital becomes the primary focus until the sentiment changes. Trading or trading in flight to quality markets is a very tough assignment that Wanjikus will hate.