Kenya | NSE and Financial Sector

[Kisumu Ndogo]

Post market trends, news and Information ups and downs, IPO'S that is NSE.

Nairobi Stock Exchange
The Nairobi Stock Exchange (NSE) is the principal stock exchange of Kenya. It began in 1954 as an overseas stock exchange while Kenya was still a British colony with permission of the London Stock Exchange. The NSE is a member of the African Stock Exchanges Association.

Nairobi Stock Exchange is Africa's fourth largest stock exchange in terms of trading volumes, and fifth in terms of market capitalization as a percentage of GDP.[1] The Exchange works in cooperation with the Uganda Securities Exchange and the Dar es Salaam Stock Exchange, including the crosslisting of various equities.

The exchange has pre-market sessions from 09:00am to 09:30am and normal trading sessions from 09:30am to 03:00pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.[2]

The NSE's offices and trading floor are located at the Nation Centre along Kimathi Street. Trading is done through the Electronic Trading System (ETS) which was commissioned in 2006. A Wide Area Network (WAN) platform was implemented in 2007 and this eradicated the need for brokers to send their staff (dealers) to the trading floor to conduct business. Trading is now mainly conducted from the brokers' offices through the WAN. However, brokers under certain circumstances can still conduct trading from the floor of the NSE.

Two indices are popularly used to measure performance. The NSE 20-Share Index has been in use since 1964 and measures the performance of 20 blue-chip companies with strong fundamentals and which have consistently returned positive financial results. Included in the Index are Mumias Sugar, Express Kenya, Rea Vipingo, Sasini Tea, CMC Holdings, Kenya Airways, Safaricom, Nation Media Group, Barclays Bank Kenya, Equity Bank, Kenya Commercial Bank, Standard Chartered Bank, Bamburi Cement, British American Tobacco, Kengen, Centum Investment Company, East African Breweries, EA Cables, Kenya Power & Lighting Company Ltd. and Athi River Mining. This index primarily focuses on price changes for these 20 companies.

In 2008, the Nairobi Stock Exchange All Share Index (NASI) was introduced as an alternative index. Its measure is an overall indicator of market performance. The Index incorporates all the traded shares of the day. Its attention is therefore on the overall market capitalization rather than the price movements of select counters.

There is however a third Index; the AIG 27 Index that compares price movements of 27 companies identified as relatively stable. The rational behind the index compares to that of the NSE 20-Share Index. But whereas the AIG is primarily defined by the AIG company (a financial service company and part of the AIG Group), the 20-share Index is from the NSE itself.
Infor: Wikipedia.

[KQV208]

Consultations are going on that will see companies listed at the Nairobi Stock Exchange cross-list at the Johannesburg Stock Exchange (JSE).

JSE business development manager in charge of African desk Geoff Musekiwa said the negotiations with various stock markets in Africa, including the NSE aim at allowing companies with a market capitalisation of at least Rands 500 million (Sh5 billion) to list at the biggest stock market in Africa.

Successful firms will list at the JSE Africa Board which is part of the JSE main market segment launched in February this year.

For a firm to list, must be based in Africa or most of its operations be based on the continent.

It must meet the Africa Board listing requirements and appoint a JSE approved sponsor to guide the process.

Mr Musekiwa said they have held talks with stock market players in Kenya, Zambia, Zimbabwe and Tanzania.

“We have met with Mr Peter Mwangi (NSE CEO) but we could not see Ms Stella Kilonzo (Capital Markets Authority CEO) because she was engaged elsewhere but we left some documents with her office,” Mr Musekiwa told the Daily Nation during a trip to the bourse in Johannesburg by journalists attending the 3rd Standard Media Forum.

The listing firm will retain its local listing with the costs depending on the monetary value of the listed securities.

Currently, Kenya Commercial Bank, Kenya Airways, Jubilee Insurance and East Africa Breweries are also listed at the Tanzania, Uganda and Rwanda stock markets.

Mr Musekiwa said companies that list at the JSE will have access to a market where they can raise more capital in Africa and have access to local as well as international investors.

“It is part of our efforts to promote the stock markets in Africa given their significance in economic development while enabling our firms to grow,” said Mr Musekiwa.

Already, a Namibian financial services firm, Trustco, has listed at the JSE and is in the process of raising R.200 million (Sh2 billion) for its expansion programme...

http://www.nation.co.ke/business/new...z/-/index.html

[Kisumu Ndogo]

Rwanda: KCB Shares Start Trading On Stock Market

John Gahamanyi And Ruth Kang'ong'oi
18 June 2009

Nyarugenge — Kenya Commercial Bank (KCB) group shares, started trading on the Rwanda Over the Counter (OTC) market yesterday, partly igniting the bank's share rise on the Nairobi Stock Exchange (NSE). The event marked the listing of the first equities stock in the market and the first cross-listing of any stock in the 18-months-old market.

James Musoni, Minister of Finance and Economic Planning launched the trading that saw KCB share opening at Rwf160 and closing at Rwf163 on its debut on the ROTC market. "KCB has, by this cross-listing, shown its confidence in our financial sector and the growth of our economy thus giving our people the opportunity to buy its shares," Musoni said before ringing the bell to inaugurate trading at Kigali Serena hotel.

Market reports show that out of 50,000 shares offered for sale on the ROTC market, 42,800 shares were traded in 12 deals. At the close of the session, KCB counter had 7,200 shares on offer at Rwf163 per share and 800 shares on bid at Rwf160.

Celestin Rwabukumba, Operations Manager of Capital Market Advisory Council (CMAC) said that the volume is bigger than the number of KCB shares traded on the Uganda Stock Exchange (USE) in the last six months. "This is encouraging," Rwabukumba said. By press time, Rwabukumba said KCB share on the NSE was continuously gaining, attributing the trend to the cross listing and other market conditions.

Immediately after Musoni rang the bell, it was reported that KCB's share on the Nairobi Stock Exchange (NSE) had jumped to Ksh22.78 (Rwf166) from Ksh20.27 (Rwf151). KCB cross listing makes it the only listed company on the ROTC market which is predominantly characterised by debt securities.

Musoni said Rwanda's economy has high growing demand for long term capital investments than the domestic capacity is able to support.

"The integration of regional capital markets will provide an avenue through which the economy will tap the regional capital markets," the Minister added.
Oduor-Otieno, the bank's group CEO said cross listing was very vital for the growth of Rwanda's stock market.

"This is a very important occasion for us as we help open a new chapter for this country's finance market. We believe this will now provide investment opportunities to thousands of Rwandans willing to invest in the stock market since it now makes it convenient for them to invest in the company right here in Rwanda," said Oduor-Otieno

KCB's cross listing in Rwanda comes barely seven months after it began operations in the country.Peter Muthoka, KCB Group Chairman said last year the bank posted Rwf42.7 billion profit before tax, 42 percent above the group's performance in 2007 which enabled the board to pay a dividend of about Rwf7 for every ordinary share.

The bank has had its shares cross listed in Uganda and Tanzania.Musoni hoped that private companies in Rwanda would follow suit and put their shares on the ROTC market.

[Kisumu Ndogo]

By WACHIRA KANG’ARU
Posted Saturday, August 8 2009 at 16:12


After fleeing at the height of the global financial crisis, foreign investors in Kenya are back at the Nairobi Stock Exchange taking advantage of the low-priced shares. Monthly statistics from NSE show that last month, foreign investor activity at the bourse accounted for more than 60 per cent of the total market turnover.

“Since March 2009, foreign investors have been doing a lot of business,” said Mr Job Kihumba, executive director Standard Investment Bank, and the second vice chairman of NSE.

“Unfortunately, it does not seem to be the case with local retail investors.”
Data compiled by CFC Stanbic Financial Services shows that between April 4 and Friday last week, foreign investors had bought over Sh4 billion worth of shares while selling about half of that, meaning they are buying more than selling.

This is also an indication that they are taking up positions in readiness to reap any expected upturn in the stock market. This is a different scenario from what prevailed in the last half of 2008. Over the third quarter ending September 30, 2008, foreign investor activity accounted for 37 per cent of total NSE market trade with the month of September recording the heaviest foreign turnover of 72 per cent.

And other than July 2008, the other two months recorded a net sale meaning that foreign investors sold more than they bought. By the third week of October, the NSE year-to-date return on the index was down 40 per cent, leaving investors smarting. “Shareholder value dropped by Sh196 billion between September 1, and October 9, 2008 as global financial woes intensified,” CFC Stanbic Financial Services reported.

A majority of the foreign investors are returning to take positions in companies that they had earlier exited. On Thursday last week, for example, foreign investors were most active on the Safaricom counter where they bought 97 per cent of the counter’s total turnover.

Also notable for having attracted heavy investor activity were Equity Bank, KCB and BAT (K) counters. “Although foreign sales on the counters were higher than foreign buys,” says CFC Stanbic Financial Services. On Wednesday, foreign investor trade accounted for about a third of the day’s total turnover, while on Tuesday their activity accounted for more than 50 per cent of the day’s traded volume.

Holding steady
“Foreign interest on these counters has seen the prices either holding steady or inching higher in recent times,” said CFC Stanbic Financial Services. With local investors having shifted from the stock market to the bond market, with investment in government papers seen to give better returns than stocks, foreign investors have been left to take advantage of the low prices at the stock market.

Notable is the fact that while the NSE 20 share index has declined 7 per cent year-to-date, it has recovered 40 per cent from its low of 2,360 in March 2009, meaning an investor who brought shares in all the companies that make up the NSE 20 share index in March has today made Sh4 for every Sh10 invested. For local investors, however, it seems once bitten twice shy is their philosophy; one that might prove costly as the market limps on.

They have failed to take advantage of the fact that NSE’s Price earning (PE) ratio - the most common measure of how expensive a stock is - has dropped from a high of 23x in July 2008 to current 13x. This is the reason why foreign investors are trooping back and buying cheap after having sold high last year.

Start buying
Expectation is that local investors will start buying when the share price starts to rally, by which time the prices will be high with little to make of the price gains. At the time, foreign investors will be preparing to sell. “It is a process of both education and experience,” Mr Kihumba said. “Local investors need to know that when the market takes a downturn, it is time to enter, not to turn away.”

[matt1783]

i love this site, it gives me the chance to jot my thoughts

[Kisumu Ndogo]

Originally Posted by matt1783

i love this site, it gives me the chance to jot my thoughts

Matt1783 your highly welcome to this forum we look forward to see more contributions from you on business and other topical issues.

[Kisumu Ndogo]

Published on 24/08/2009


Nairobi Stock Exchange (NSE) investors have every reason to smile when real estate is listed at the bourse. This follows reports that the Capital Markets Authority is at an advanced stage with plans to list the first real estate investment trust, popularly known as Reit in financial jargon .

"We are formulating rules to guide how retail investors will be able to trade in quoted REITs at the bourse," said Ms Stella Kilonzo, the chief executive of the CMA in a recent interview. A source at the CMA said following the announcement of rules guiding the formulation of collective investment vehicles — the launch of the first Reits would follow soon.

"The announcement of the first Reits will be done soon," said the source who requested anonymity citing a confidentiality agreement with CMA. Reits provide an avenue through which investors can pool resources to develop or trade in properties with returns shared equitably after a specified trading period.

Reits are traded at stock markets in the form of shares, helping liquidity as property can be sold at the exchange in whole or bits, once they are floated. With the listing of the first Reits, individuals with property will have the option of offloading such property into the market and trade with it at the bourse.

Once a Reit is listed at NSE, anybody can buy and sell their shares to trade in real estate business while creating a pool of resources that can be used to develop the property market and address the current shortages in the residential, commercial and industrial housing. Such a listing will also allow small-scale investors wishing to trade in real estate to have a chance to trade in the shares of such a Reits — effectively owning and trading in real estate by buying the quoted shares of any Reits listed at the bourse.

Earning returns
Real estate investment experts say that the development is bound to address liquidity crunch, which property owners find themselves in after putting all their money into developing a property, whereas sometimes takes time to make recoup investments or begin earning returns.

Mr Paul Sigsworth, the managing director of ICEA Asset Management said that the timing was appropriate because Nairobi has been generating interest on the global property scene due to its unique poison as the launch pad to the East African economies. "The recent publication of the rules to allow pension funds to invest in property earning funds, Reits and other collective investment schemes without necessarily being listed at the bourse is a welcome one," said Sisgworth.

The first Reits listing — widely anticipated before the end of the year — will increase activity at the bourse as individuals and companies, including the National Social Security Fund (NSSF) and insurance companies, which hold so much property will have an avenue to dispose of huge properties which they were otherwise constrained to. "Such a listing would increase the level of development as private developers can easily access tied up capital in properties whenever they sense an investment opportunity elsewhere," said Prof Johnstone Kiamba the chair of the Kenya Institute of Planners.

The world over, Reits have been used as the avenues to spur real estate development particularly in mobilising funds to address residential housing projects. Best remembered is Darin Gunesekera, an expert in low cost housing development from Colombo, Malaysia, who employed an almost similar model to increase affordable housing in his home country and eliminate slums. "Kenya can use Reits to collect capital from the stock market to eradicate slums and provide decent housing," said Gunesekera at a past conference.

Investment outlook
Since the debate on REITs came a fore, a number of firms have shown interest, citing immense opportunity that the listing of the first Reits portends for the real estate sectors. Among the big names that have shown interest in the concept include Rutleys — the investment arm of KnightFrank — an international property company.

Last year the firm launched a Sh13 billion property fund in response to what it termed a "good property investment outlook" for the country and the East African region. The firm, however, had to list its shares in Johannesburg and London stock exchanges, leaving out NSE after it failed to find a suitable local REIT partner coupled with specific guidelines on the operations of such investment trusts in the country

Another local property company with US ties Bora Capital was also keen to venture into the market using REITs. "As soon as the regulations have been put in the market by CMA, we would be more than willing to take up the opportunities that such a development brings along," said Mr Joe Macharia, chief executive of Bora Capital.

Advance plans to launch a Reits follow the successful completion of a study on the best model to apply when introducing the first Reits. Reits, however, have their downside for a country like Kenya. Analysts say that enough caution should be put in place to ensure that the correct valuations of buildings are reflected in the Reits.

If an overvalued property is listed in a Reits, the level of return from such shares would be minimal as the property does not reflect the true market trends. There has also been concern on the need of a solid statistics base on the trends on the level of returns for property in the country as the real estate business is highly varied and could be misleading to some investors.

[Kisumu Ndogo]

Thu Sep 24, 2009 11:28am GMT

NAIROBI (Reuters) -
Kenya will pay out 302 million shillings to investors who lost money when a stock brokerage collapsed last year, finance minister Uhuru Kenyatta said on Thursday. The east African nation has been taking measures to restore flagging investor confidence at the Nairobi Stock Exchange after the fall of Nyaga Stockbrokers, followed by Discount Securities. "Protection of investors is critical to sustained growth of securities markets world over," Kenyatta told a news conference. "The main objective of the payout is to restore confidence."

The minister appointed a former central bank governor, Micah Cheserem, as chairman of market regulator Capital Markets Authority in March, in a bid to stem the lack of confidence. An antifraud unit for the stock market has been set up and stockbrokers published half-year financial results for the first time this year. CMA is also prosecuting the directors of Nyaga. More than 27,000 investors will be paid money back with 90 percent getting full payment, Kenyatta said. The law allows for a maximum payment of 50,000 shillings per investor.
© Thomson Reuters 2009 All rights reserved

[desert burner]

Through M-Kesho, the instant access to an Equity Bank account will definitely further the bankability of ordinary Kenyans. Photo/FREDRICK ONYANGO


Following the recent flurry in branch expansion, banking the unbanked, SME targeted banking products, mobile money transfer, not to mention ATM proliferation and of course the advent of credit referencing bureaus in Kenya one would have thought that apart from agency banking, the space for innovation in the commercial and retail banking space was nearing exhaustion.

Frankly, as much as being able to withdraw money from my M-Pesa account felt really nice, I always felt that having to withdraw money, then trooping to the nearest M-Pesa agent to deposit it, and then send it to my folks in the village was still a cumbersome process.

In my view, it would be easier if I could just deposit the money directly from my account to M-Pesa at the ATM point, and then send it wherever.

Well, Safaricom and Equity Bank have gone a step further and removed the ATM and the all too familiar queue in the banking hall from the picture and virtually transformed our mobile phones into banking facilities all in one swoop. Fancy that, huh!

The product M-Kesho has also opened up the agency banking space at no expense to Equity and provided access to a banking licence to Safaricom, without the latter having to go through the regulatory red tape that has been responsible for confining the growth of mobile money in the Kenyan economy.

Let’s start by looking at the sheer volumes this partnership could entail for the banking sector in Kenya.

Assuming that M-Pesa subscription stands at 10 million, and also assuming that a majority of these subscribers are in the unbanked population, the instant access to an Equity Bank account will definitely further the bankability of the common mwananchi.

Then, there is the fact that since the account is electronically based, all transactions will be easy to track, and therefore the credit referencing database will soon have a great platform for tracking and rating the creditworthiness of a huge chunk of the Kenyan population.

This data will in turn hand the consumer i.e. M-Kesho account holder, immediate access to a credit facility based on their transaction history, without the unpopular rigours of having to fill numerous forms, find guarantors for their loans and open their financial cobwebs to some nondescript bank-loan officer who does not even have the ability to grant them a loan in the first place.

Then there is the issue of agency banking.

Statistically, the local shopkeeper is essentially the most reliable credit reference that any financial system can have and this is exactly where you will find the numerous M-Pesa agents situated (20,000) to be precise.

If 20,000 agents register 500 clients then we have 10 million new bank accounts which will transfer or hold an average of Sh2,500 each or roughly Sh25 billion in electronic cash, circulating in the economy at any one time.

From an investment analyst’s point of view, the system will give us on a silver platter a platform for tracking the spending patterns within the economy, and thus the ability to predict and create models for formulating monetary policy which reaches to the very grassroots level that has been so elusive in the past.

The new Agents also stand to gain from the incentive based system since, all financial transactions from purchase of plane tickets to consumer credit will be performed by them, thus creating much needed employment, while at the same time reducing the hustle of travelling to a bank every time one needs to transfer or withdraw some cash, not to mention a myriad of advantages that will accrue to both the investor and the banking fraternity as a whole.

The agent will effectively be transformed into your retail banker and cash will not have to be moved from localities since the same cash will instantly be used to service other financial needs in the locality.
Don’t forget here that a new channel will be open for swiftly disbursing development stimulus funds and probably the financial assistance to poor families without them having to spend on getting to financial centres to access funds that are more useful elsewhere.

I will not even try to quantify what it will do for disaster management and even from the corporate frontline, the disbursement of dividends to investors.

Incidentally, there are other externalities like mobile phone number registration since the ID number is a primary requirement for access to the service.

Basically the implications are endless so let’s focus on the obvious for now.

Risk is always an issue when all these factors come into play but it is worth noting that Safaricom has been in the money transfer business for long enough to have got the gist of it and Equity bank does not need any lessons regarding security and dealing with microfinance in Kenya.

The weak link obviously lies in the agency system, and hopefully the two institutions will expend extra resources to ensure that the agents do not mess up one of the most innovative partnerships of our time.

The entry of other commercial banks and telecom firms will eventually provide the competitive mix that will probably elevate the Kenyan populace into the most efficiently and effectively banked society globally, and further prove the unending advantages that crossing the digital divide can offer developing countries and emerging markets as a whole.

It will also highlight the advantages of open mindedness and innovation as drivers of economic breakthroughs in the 21st century.

The mobile phone will definitely be a one stop shop for all financial transactions from banking, accessing credit, formulating monetary policy, investing in the capital markets to probably buying a loaf of bread at the local retail shop.

Then retail banking will become a phone based issue leaving banks to deal with SME’s and corporate customers and probably investment advisory services.

Imagine walking into a banking hall or a stock brokerage and finding it empty.

http://www.businessdailyafrica.com/O...z/-/index.html

[desert burner]

i am really happy the revolution that is taking place in both the financial and the communication sectors

[Kisumu Ndogo]

NSE Outperforms African bourses



A trader at Nairobi Stock Exchange. The bourse recorded strong growth for the first half of the year,
a recovery after past years of reduced activity. Photo/FREDRICK ONYANGO

By Johnstone Ole Turana
Posted Tuesday, August 24 2010 at 00:00

The Nairobi Stock Exchange has outpaced its peers in Africa, positioning Kenya as a preferred investment destination. The bourse recorded strong growth for the first half of the year, a recovery after past years of reduced activity. “The equities and bond markets have recorded robust growth due to positive interim results and expected strong economic recovery,” said Mr Eddy Njoroge, the chairman of Nairobi Stock Exchange (NSE).

The NSE equity turnover since the beginning of the year grew to Sh61 billion, almost double the annual equity turnover in 2009, which was Sh38 billion.Analysts say the improved performance is due to growth of the bond market which has witnessed a threefold increase on its turnover, which topped Sh338 billion by last month.

The entire bond turnover for 2009 was Sh110 billion.
The NSE 20 Share Index has also gone up by 37 per cent outperforming other major stock markets such as in Nigeria, Ghana and South Africa which grew by 24.7 per cent, 14.75 per cent and 2.49 per cent respectively. Wider representation of key sectors in the bourse and robust counters especially from Kenya’s financial sector which saw minimal effects of the global banking crisis has also lifted the stock market.

“Nigeria’s stock exchange is still smarting from the banking crisis which forced the Central Bank of Nigeria to rescue the troubled banks which accounts for huge proportion of trading, Ghana’s equities market is still small and thin while South Africa’ stock exchange is yet to recover from the effects of the global financial crisis due to its strong linkage,” said Mr Edwin Nyaducha, a managing principal of Inkubate, a corporate finance and business advisory firm.

The capital market is expected to continue recording improvement as the new constitution comes into effect. “The vote is an upside for the socio-economic environment and signals a brighter future for the local economy and the exchange,” said Mr Njoroge while presiding over the listing of the KCB Bank Rights Issue shares at the Nairobi bourse.

Increased borrowing
The stock exchange is riding on the increased borrowing appetite from the public as businesses shy away from banks loans. “The focus on domestic fund raising initiatives is critical as it not only prove the ability to tap resources, but acts as a barometer of level of maturity to potential investors especially for foreign direct investment,” said Mr Amish Gupta, an investment banker with Standard Investment Bank. The strong performance of NSE is a pointer to the resurgence of equities markets in Africa as it is viewed by investors as one of the strong emerging markets.

“This year, Africa will account for 20 per cent of business hence our focus is to increase the footprint in Africa both in terms of presence and operations,” said Mr Stephen Jennings, chief executive of Russia’s Renaissance Capital which has a subsidiary in Kenya.

The discovery of oil in countries such as Ghana, Uganda and Angola and improved global commodities prices has made Africa a hotspot for foreign investors.The East African Community Common Market has opened up the region with Kenya as the preferred hub due to its relatively advanced economic status. With an estimated market population of 130 million people, the demand for goods and services is expected to provide rich business ground for investors. Increase in disposable income and changing lifestyles have necessitated the need to meet the growing demand.
http://www.businessdailyafrica.com/N...z/-/index.html

[Kisumu Ndogo]

23 August - Kenyan Markets Wrap - Samuel Gichohi - Standard Investment Bank

[Kisumu Ndogo]

Bharti Airtel's plans for Africa with CEO Manoj Kohli

Manoj Kohli, CEO of Bharti Airtel International has been tasked with cementing India's biggest mobile company's place in Africa's burgeoning telecoms market. But he faces some tough competition from already established players like South Africa's MTN, Vodacom, and the Vodafone powered Safaricom. ABN's Nicolette Arends spoke to Manoj Kohli about the company's strategy in Africa.





8 September - Kenyan Markets - Samuel Wachira - Drummond Investment Bank

Alishia Seckam speaks with Samuel Wachira, General Manager at Drummond Investment Bank, looking at:

• State of the NSE 20
• Kenyan economy expected to grow 5.2%
• Private investment
• Nation Media Group to cross list on Rwandan Bourse

[Kisumu Ndogo]

NSE demutualisation to kick-off by January 2011

Updated 4 hr(s) 57 min(s) ago
By JAMES ANYANZWA

The Capital Markets Act will be amended in the next four months to pave way for the planned demutualisation of the Nairobi Stock Exchange (NSE).The current members of the NSE approved the proposal for a demutualised exchange in March this year, but a lethargic political process required to enact the necessary legislations into law has held the process back.

Traders at the NSE. Once demutualised, the exchange will be called Nairobi Securities Ltd,
with an authorised share capital of Sh1 billion.

In a demutualised exchange, the ownership, management ad trading rights are segregated from one another.Peter Mwangi, the NSE chief executive, said amendments to the CMA Act would come into force on January 1 next year, after the Finance Bill is passed into an Act of Parliament. He said the exchange stands ready to make the necessary applications to effect its demutualisation once the 2010 finance bill is assented.

"In furtherance of this, the NSE recently streamlined its operations in preparation to becoming a full service securities exchange," he said at the First Annual African Alliance East African Investor Conference Gala dinner in Nairobi. Traders at the NSE. Once demutualised, the exchange will be called Nairobi Securities Ltd, with an authorised share capital of Sh1 billion.

The NSE members, mainly stockbrokers and investment banks, resolved to retain 80 per cent shareholding in the demutualised company for two years, before diluting it to 40 per cent through an initial public offering (IPO). The CMA’s Investor Compensation Fund (ICF) and Treasury will each own 10 per cent stake in the new entity. The existing 19 stockbrokers and investment banks would split the 80 per cent stake equally among themselves.The ICF is expected to its sell a portion of its stake in the demutualised company to replenish its reserves. Currently, brokers enjoy a monopoly of the NSE. The demutualisation process seeks to deal with corporate governance by separating ownership and trading rights of the member firms.

conflict of interest
Proponents of the process see it as the solution to the challenges facing the exchange, which include conflict of interest. In some cases brokerage firms, who are the principal members of the bourse, act as dealers, and fund mangers. The brokers also agreed to change the name of the demutualised exchange to Nairobi Securities Ltd, with an authorised share capital of Sh1 billion, and the change the memorandum and articles of association to reflect the new status.The NSE’s current paid up capital is fixed at Sh200 million. Demutualisation is expected to transform the exchange, and position it to realise its vast potential, and attain its vision of being a leading securities exchange in Africa with a global reach.

http://www.standardmedia.co.ke/Insid...id=14&j=&m=&d=

[Kisumu Ndogo]

Featuring Lisa from Kenya in the Apprentice..2010

[Kisumu Ndogo]

Watch Season 10:

Watch Season 10 : Ep. 6
The Apprentice Week 6

Watch Season 10 : Ep. 7
The Apprentice Week 7

Watch Season 10 : Ep. 8
The Apprentice Week 8

[ernestombayo7]

LIZA is tough,i like her,though i don't think she stands a chance of winning.

[Kisumu Ndogo]

Originally Posted by ernestombayo7

LIZA is tough,i like her,though i don't think she stands a chance of winning.

It's really gruelling, though I tip one of the following 3 to win Season 10 The Apprentice. Hopefully our girl lisa will squeak through to the final two so long as she maintains her tempo, be more proactive and use aggression as needed.



Steuart Martens
Age: 27

Hometown: Washington, D.C.
Background: Martens was once the successful owner of four companies. Unfortunately, as the economy took a downturn, he was forced to close down two of his companies and lay off his entire staff. A serial entrepreneur, he is always looking for the next big business opportunity. Martens attended Purdue University on a swimming scholarship and received a Bachelor of Science in business. He also made it to the Olympic trials for swimming and is heavily involved in D.C. government.

Clint Robertson
Age: 40

Hometown: Austin, Texas
Background: Robertson received a Bachelor of business administration in accounting from Texas Christian University and a Juris Doctorate in law from Southern Methodist University. He went on to be a successful certified public accountant, real estate attorney and developer to having an estate sale where he was forced to sell a large amount of his family's possessions due to the economy. Currently living off of credit, Robertson is also a strong believer in God and spends much of his free time with his wife of 18 years and their three boys.

Anand Vasudev
Age: 31

Hometown: New York City
Background: Vasudev worked for a lucrative private firm managing several large multi-million dollar real estate investments. The successful Emory University graduate thought he was "indispensable" to his firm because of the high level of expertise he had developed over the years. His eventual layoff came as a huge shock, yet was very motivating. In the face of adversity, Anand followed his dream and moved to New York City, where today he is a struggling entrepreneur trying to launch an innovative new vitamin-infused wine company, while still also looking to get involved in media and entertainment business.

Liza Mucheru-Wisner
Age: 30

Hometown: Corpus Christi, Texas
Background: Born in Kenya, Mucheru-Wisner was part of the Kenyan National Golf team and was recruited to play golf at Texas A&M University-Corpus Christi. She completed her education and received her Masters degree while simultaneously starting an educational technology company. However, her business venture fell victim to the recession and she is struggling to make it a success. Mucheru-Wisner, now a wife and mother of two, works hard to stay connected with her family in Kenya and Ireland and is looking for opportunities to grow and expand her business.

Infor:-http://www.cbsnews.com

[desert burner]

Rules have been published under which the Nairobi Stock Exchange would sell its shares to the public in four months.

Related Stories

• German firm buys 25 p.c stake in Resolution Health

The public has until February 23 to present its comments to the Capital Markets Authority on the guidelines published in the dailies on Tuesday.

The process, known as demutualisation, seeks to separate the stock exchange ownership and management.

“The publication of the guidelines is a major milestone which we are keen to complete within the first quarter of 2011,” chief executive and chair of the stock exchange demutualisation steering committee Stella Kilonzo said on Tuesday.

Demutualisation is expected to improve the stock exchange’s governance and deepen the capital markets.

“It is good for the market because it will boost investors’ confidence and enable the NSE to position Kenya as the financial services hub for East and Central Africa,” NSE CEO and committee vice chair Peter Mwangi said when contacted.

After the demutualisation, the NSE, which is currently a privately-owned company, limited by guarantee, will become a firm limited by shares.

It will also change its name to Nairobi Securities Exchange and give way to three types of shareholders after an initial public offering.

The 18 sto
Rules have been published under which the Nairobi Stock Exchange would sell its shares to the public in four months.


The public has until February 23 to present its comments to the Capital Markets Authority on the guidelines published in the dailies on Tuesday.

The process, known as demutualisation, seeks to separate the stock exchange ownership and management.

“The publication of the guidelines is a major milestone which we are keen to complete within the first quarter of 2011,” chief executive and chair of the stock exchange demutualisation steering committee Stella Kilonzo said on Tuesday.

Demutualisation is expected to improve the stock exchange’s governance and deepen the capital markets.

“It is good for the market because it will boost investors’ confidence and enable the NSE to position Kenya as the financial services hub for East and Central Africa,” NSE CEO and committee vice chair Peter Mwangi said when contacted.

After the demutualisation, the NSE, which is currently a privately-owned company, limited by guarantee, will become a firm limited by shares.

It will also change its name to Nairobi Securities Exchange and give way to three types of shareholders after an initial public offering.

The 18 stockbrokers and investment bankers who currently have seats on the board will have both trading and voting rights as well as hold a maximum of 40 per cent stake of the new entity in less than three years.

Public shareholders will only have voting rights and hold a minimum of 40 per cent stake and the Investor Compensation Fund, which will also only have voting rights and a 20 per cent stake.

The stock exchange is expected to provide the proposed plan for the separation of the commercial and regulatory functions of the exchange.

Other key documents include the NSE’s development plan, new rules or amendments to existing rules to implement demutualisation and the most recent audited financial statements.ckbrokers and investment bankers who currently have seats on the board will have both trading and voting rights as well as hold a maximum of 40 per cent stake of the new entity in less than three years.


Public shareholders will only have voting rights and hold a minimum of 40 per cent stake and the Investor Compensation Fund, which will also only have voting rights and a 20 per cent stake.

The stock exchange is expected to provide the proposed plan for the separation of the commercial and regulatory functions of the exchange.

Other key documents include the NSE’s development plan, new rules or amendments to existing rules to implement demutualisation and the most recent audited financial statements.

[desert burner]

First Community Bank (FCB) has introduced an Islamic-compliant unit trust underlining the growing list of Islamic products targeting the Muslim market.

The firm has received approval from the Capital Markets Authority (CMA) to rollout the fund, which will make selective investments in equities, government bonds and real estate options that are Sharia-compliant.

The new unit trust fund adds to the Islamic banking, insurance services, food, medicine and hospitality products launched in the country in the past few years by firms like FCB, Gulf African Bank and Takaful Insurance of Africa.

Services

Players are hopeful that Islamic financial services will take off, arguing that the market is largely untapped.

“Islamic finance is an alternative investment that is yet to be tapped. A lot of Muslims want to buy bonds or stocks but they cannot because the products are not structured to satisfy their faith,” said Nathif Adam, the chief executive of FCB. “We see this move as strengthening our portfolio of Islamic financial services,” Mr Adam said.

FCB has been seeking to expand its financial services venturing into takaful – Islamic insurance services— last year in partnership with Cannon Assurance.

Its banking business, which was started in 2008, is yet to break even but has seen a reduction of losses.

In the six months to June last year, the bank made a net loss of Sh67.8 million, representing a reduction of 24 per cent compared to the net loss of Sh89.1 million a year earlier.

Mr Adam attributed the sustained losses to an ongoing expansion plan that saw the bank open six new branches last year, adding that the bank should break even

Interest

Kenya’s 4.3 million Muslim population, whose numbers have more than doubled in the past two decades and are richer than ever before is being seen as the reason for main driver of the attention business is paying to their interests.

It has also helped that Kenya has become the natural destination of choice for thousands of rich Somali Muslims fleeing two decades of war in their country.

Sharia law bars financial services providers from earning or charging interest and instead offers a return to savers by sharing profits from ethical businesses that do not include alcohol, tobacco and gambling.


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