Over 10 years we help companies reach their financial and branding goals. Maxbizz is a values-driven consulting agency dedicated.

Gallery

Contact

+1-800-456-478-23

411 University St, Seattle

maxbizz@mail.com

Kenya: NSE eyes stakes in East Africa stock exchanges – african markets

The Nairobi Securities Exchange (NSE) is eyeing investments in regional bourses as it looks to supplement the revenue it earns from trades and data sales at the local market.
 
The bourse recently bought a 4.9 percent stake in Tanzania’s Dar es Salaam Stock Exchange (DSE) and is now looking at investing in the Uganda Securities Exchange ( USE) once it self-lists.
 
Regional bourses have already attracted cross-listings from several Kenyan companies such as KCB, Equity Holdings, Kenya Airways, DTB, and Uchumi Supermarkets , boosting their relatively low home-grown listing numbers.
 
Investing at this stage in the bourses would give the NSE a potentially rewarding return down the road when these bourses grow in size, with the exchange, therefore, viewing these investments as being of strategic value.
 

 
“We are looking at investing in other exchanges in the region as they undergo demutualisation and go public….USE is not listed but has been demutualised,” said NSE chief executive Geoffrey Odundo.
 
The NSE had initially acquired a stake in the Dar bourse when it rolled out an IPO in 2017, before selling it, and then returning back to purchase the 4.9 percent stake.
 
The NSE itself demutualised and self-listed in 2014, allowing the public to own shares in the company which was previously wholly owned by trading intermediaries (stockbrokers).
 
Many of the stockbrokers and investment banks —which after listing each held a stake of 2.7 percent in the bourse— have since sold their shares either fully or in part.
 
Locally, the NSE has invested in several subsidiaries over the years, including NSE Clear Limited, a company formed to act as a central counterparty in all derivative transactions.
 
It also holds a stake of 38.5 percent in the Central Depository & Settlement Corporation Limited, which provides automated clearing, delivery, and settlement of shares traded at the market.
 
The NSE’s net profit declined 21 percent to Sh132.5 million in the year ended December on higher costs.
 
It has, however, declared a record dividend of Sh364 million or Sh1.4 per share.
 
This includes a final dividend of Sh0.4 per share and a second special payout of Sh0.5 per share, adding to the first special distribution of Sh0.5 per share in December.
 
Mr Odundo said the company will still be left with cash that it will use to make additional investments in the business.
 
MARKET STATUS: OPEN
KENYAN SHILLING (KES)


By using our website, you agree to our use of cookies. Learn more
Cookies are short reports that are sent and stored on the hard drive of the user’s computer through your browser when it connects to a web. Cookies can be used to collect and store user data while connected to provide you the requested services and sometimes tend not to keep. Cookies can be themselves or others.
There are several types of cookies:
So when you access our website, in compliance with Article 22 of Law 34/2002 of the Information Society Services, in the analytical cookies treatment, we have requested your consent to their use. All of this is to improve our services. We use Google Analytics to collect anonymous statistical information such as the number of visitors to our site. Cookies added by Google Analytics are governed by the privacy policies of Google Analytics. If you want you can disable cookies from Google Analytics.
However, please note that you can enable or disable cookies by following the instructions of your browser.
Copyright © 2021 AM Investor Services SPRL. All Rights Reserved.
Subscribe to our Newsletter
 
Get the latest insights, stories and trends straight to your inbox.
 

source

User Avatar

Author

Joseph Muongi

Financial.co.ke was founded by Mr. Joseph Muongi Kamau. He holds a Master of Science in Finance, Bachelors of Science in Actuarial Science and a Certificate of proficiencty in insurance. He's also the lead financial consultant.