Is the NSE a good buy?

The SafariCon OFS is about to start. I am waiting for the prospectus before I make a decision.

Since the OFS has been hyped for so long, there is a huge local - and foreign - pent-up demand for the shares. The 'unchallenging' price of 5/- will push the OFS to all reaches of Kenya.

As discussed earlier, 10,000/- is affordable for many Kenyan households.

I have been asked what other shares look 'good' since prices have dropped as retail investors sell off other shares to apply for SafCon.

Olympia - Yesterday, it dropped 9.5% to 11.55 which makes no sense. OCHL's main business units are in the S.African region. The year end was 29 Feb 2008 and the results should be released by 31 May 2008. OCHL had a successful Rights Issue in 2H of last year.

Kenya Airways - It has been flirting with the low-50s. It is challenging to be an airline but KQ remains dominant in profitable E & C Africa. As incomes rise so do passengers. I hope the Kenya Airport Authority will expand the airport to cope with KQ's forecasts of 4mn passengers by 2010.

Equity - It just keeps on growing. I think it needs to drop further. Definitely worth buying at the rate of growth!

Barclays - They have expanded rapidly in 2007 and I expect further growth in 2008 with the new branches & aggressive expansion into alternative methods of sale/promotions.

Kenol - Aggressive growth in E & C Africa. Buying Kobil with mostly Kenya assets will be a drag. The gains from lower corporate costs as well single brand identity will benefit Kenol.

KCB - Get ready for the Rights. Regional growth is being ramped up in Uganda, S. Sudan & Tanzania.