Most industrials have been reporting full year results ended june 2010 and i must say they're not that impressive

MSC: PAT down 3%
Unga: PAT up 40% (market was expecting 100%+)
Kengen: PAT down 5%
KPLC: Restructuring not as good as expected.


With this in light I hope financials can reverse the trend with their Q3 results so i can make serious cheese!!!

Financials wouldn't disappoint. I see my quiet favourite NIC gaining slowly and steadily (49 today). Of course Jubilee will be jackpot and KCB will be decent even without spectacular results. SCB, what can I say? Dumped all my shareholding there at sh 300 except a minimal 200 which I used for the extra rights request. Even if I don't get the extra rights asked for, I can still get back in at 250....I love this game.

In case i miss these two buses, whats the buzz with jubilee?

For long term investors, however attractive financials are, balance it up with industrial and or other sectors.
Financials should not be more than 50% for an ideal portfolio, from long term perspective.
NSE just like other African markets are cyclical.

@sparkly JHL posted 69% increase in H1 profits most of it realised from the NSE.. and the way things are going for the NSE towards year end i wonder what they'll announce for FY2010...

Even a 50% increase will drive EPS to 24 and with its normal P/E at 10.5 the stock will trade at 250... a good dividend and we're at 400

@Pkoli,

Anyone whose portfolio comprises mainly financial stocks is an indication of inexperience.

Worldwide it is an established fact that the financial sector is a fragile sector.

Accumulated and undeclared non performing loans, govt policy can make financial stocks to crash as a pack of cards. We have seen it in USA/Europe, in Nigeria and Egypt. The most fraudulent and sharp practices and cover ups of financial statements without being detected by external auditors are more easily perfected in banks and financial institutions. What affect one bank affects the other because of inter bank transactions. It also affects insurance companies.

But take a look at other sectors(except of course weather dependent agric sector) , they are on their own. What affect a telecom company may night affect a paint company neither a brewery nor a power generation company. Ditto for newspaper company, or cement manufacturer.
So your investment in other sectors are less risky and less dependent on unknown factors.
. Quick returns thrills but most often is not sustainable

Not all that glitters is gold. Gradual consistently consistent growth is the best on this game, unless you just want to speculate and quit after making a kill.

@Pkoli,I dont think ARM is that resilient...together with Scan and NIC I watched them defy the bear briefly but when the panic began they broke badly,I remember trying to nab ARM @55.

The industrials rallied strongly way before the banks did and now the banks have caught up...I guess banking is where the action will be for the next year then industrials start to rally at the latter part of the year.

@wahe guru, you forgot the worst culprit of all. East African Portland Cement which slam dunked with a loss.

At the Half Year level, BOC, Bamburi and East African Cables are all set to disspoint.

KK and Total at least bucked the trend and EABL and BAT seem not to have been too bad.

Did anybody see Jubilee look at 200 this morning?

EABL seem to be the most consistent over the years.
Good dividend history (twice a year), consistent bonus (average of once every 4 years for the past 12 years).
Permit me to say it is one of foreigners most prefered counter in industrial sector.