Scangroup Share Price

Special Dividend

On July 6th, 2020 WPP Scangroup declared a Kshs 8 dividend per share. The shares were to trade cum divided until 28th of July. During that period the share has been trading at around Kshs 20. What most investors don't know is that the Kshs 8 dividend that Scangroup is going to pay came from disposal of its Kantar Africa assets. The company also sold 100% of its Millward Brown East Africa Limited, Millward Brown Nigeria Limited an Millward Brown West Africa Limited. 

WPP Scangroup had also disposed all of its shareholding of the issued shares in Research and Marketing Group Investment Limited, a Mauritanian Holding Company for Kantar TNS business in Kenya, Nigeria, Ivory Coast, Senegal, Ghana, Cameroon and the UK to Kantar Square Two B.V. 

The Kshs 8 dividend is a special dividend which should be a great precaution for investors. Going forward the price of Scangroup shares will continue to lose value and I will buy the share at Kshs 2 soon enough. 

Currently the share price has plummeted by about 49% and is expected to plummet further. The special dividend will also distort and misrepresent the companies PE Ratio in the future.  

 

Safaricom Kshs 20 Smartphones

Safaricom set to benefit massively from the launch of their Kshs 20 a day credit smartphone purchase. The offer will tie many Kenyans to Safaricom as well as encourage them to use Safaricom services. 

The program will advance the growth of data sales which had received a beating from their competitors offering cheaper data rates. While this might seem a short term solution for Safaricom, only cheap data will win in the end. Safaricom data rates have been exorbitant in comparison with Airtel and Telkom. However, Safaricom has been offering quality data services as compared to other networks especially outside the main cities. 

Without a doubt, the offer to buy smartphones through airtime will change the game. 

Investment Apps in Kenya(G-Kuze)

G-Kuze

Genghis Capital is one of the leading stock broker firms in Kenya. The company has gone a step further to develop an app known as G-Kuze to help investors trade stocks through their mobile phones from anywhere in the world. 

Through G-Kuze you can deposit as little as Kshs 500 and start investing in a variety of investing in a variety of investment products. In addition they also offer some investment education and information. You can download the app from through their website; https://www.genghis-capital.com/g-kuze-app-the-new-way-to-invest/

Features of G-Kuze

• Account Opening

• Create a unit trust account or a CDS account using G-Kuze. No forms or a physical visit to an office required!
  Automatically upload your documents and our team will undertake verification for faster processing.

• Depositing & Withdrawing Funds

• Instantly make deposits to your Unit Trust or CDS account, from anywhere and at anytime.
  The auto-receipting feature means that the money reflects in your account in a matter of seconds!
  There are multiple ways to credit your account: Mobile money (Mpesa), Credit or Debit Card (Visa, MasterCard and Verve Card), or Bank deposit (via any of the 5 bank accounts provided).
  There is multi-currency acceptance, so invest from anywhere in the world.
  Make a request to withdraw funds directly to your Mpesa account, or bank account anytime.

• Securities Trading

• G-Kuze links you to the NSE giving you access to all the asset types listed on the exchange.
  Detailed information on each stock listing is available with a graphical representation of performance, and options to buy or sell

• Unit Trust

• Access a savings options with better returns than a conventional savings account.
  Through G-Kuze you can access the Genghis Capital unit trust product, Hela Imara, which allows you to trade in the money market.
  

• Portfolio View, News & Research

• View the entirety of your portfolio in equities (stocks) and unit trust in a single glance.
  No need to request for a statement to be emailed.
  Aggregated news from various sources relating to the economy, financial services, current headliners and general information is available within G-Kuze
  The Genghis Research department also shares weekly and periodic daily updates with market specific analysis and fundamentals.

• Live Chat

• Reach out via direct chat function for any assistance, clarification or feedback within the App.

Starting Capital for Stocks Investments

How much do you need?

Most people do not invest in the stock market because they imagine you need too much money to invest. But surprising enough you might not need that much money. 

The minimum stake of stocks that you can buy is 100 shares per counter. This means that to start investing you need 100 shares from any company that is listed in the stock exchange. 

Here are some of the cheap stocks and the amount you need to buy 100 shares. 

Company	Current Price	cost of 100 Shares	Brokerage fee (2%)	Total Cost
Uchumi Supermarkets	0.37	37	0.74	37.74
Home Afrika	0.44	44	0.74	44.74
Eveready East Africa	1.07	107	0.74	107.74
Kenya Power & Lighting	1.85	185	0.74	185.74
East African Cables	2	200	0.74	200.74
TransCentury	2.01	201	0.74	201.74
Olympia Capital Holdings	2.24	224	0.74	224.74
Kenya Re-Insurance Corporation	2.37	237	0.74	237.74
CIC Insurance Group	2.45	245	0.74	245.74

So as you can see some stocks are quite cheap. However, the more you invest the more the returns. 

Everyone should try and buy some shares from the stock markets. 

  

Investing Strategy During a Pandemic

Investing Strategy During Economic Recession

During the current recession which has been brought about by the pandemic, investors need to act cautiously but remain vigilant in monitoring the market landscape for opportunities to pick up high-quality assets at discounted prices. A recession is a difficult time but it also coincides with the best investment opportunities.

Investors who want to survive and thrive during a recession will invest in high-quality companies that have strong balance sheets, low debt, good cash-flow, and are in industries that historically do well during tough economic times.  

Some of the companies which I would recommend for a purchase at this time include all the companies in the agriculture sector and the following companies;

• East Africa Cables
• Nation Media Group
• Diamond Trust Bank Kenya
• NIC Group
• Centum Investment
• I & M Bank
• KCB Group