Thursday, November 22, 2007

Mea culpa: more stockbrokers

I have always been an advocate for more stockbrokers in the country especially to served in the rural areas.

But, as narrated in real lean times, there is a serious shortage of investors, not brokers.

This is because most Kenyan shareholders are buy and hold investors not active traders or speculators. This seen where companies with huge numbers of shareholders have relatively small numbers of CDS accounts (many of which are ghost companies created to increase IPO allocations).

So for those stockbrokers such as Discount Securities and CFC who have built nationwide branches, the volumes of investors and trades at theses offices are relatively low. – As a trip to the Mombasa and Nairobi offices of these brokers showed quick services, sparse halls and low activity. Such places only become strained before and after IPO’s but otherwise return to a slow pace.

So who should bridge the gap – productively and profitably? Stock agents, and stockbrokers through partnerships (such as CFC through Postal Corporation), Suntra (through Postbank) and Ngenye Kariuki (through K-Rep bank) to handle the everyday action, but not by stockbrokers opening up nationwide branches.

Next time you see a crowds around the block will be the Safaricom IPO in December.

Other Thursday briefs’

NSE:
- Speaking of Safaricom, there was a story in the Wall Street Journal focusing on if it the $500 million IPO will be accessible to foreign investors. A co-listing in London is possible using GDR’s
- Best wishes to NSE Chairman Jimnah Mbaru who will be contesting the Starehe parliamentary seat and stockbroker Ngenye Kariuki in Kiharu.

Banking:
- The government will sell 2/3 of the 90% shareholding in Development Bank of Kenya.
- K-rep to raise 500 million through a bond
- Islamic banking spreads as both K-Rep (Halat) and National Bank (Al Mumin) add Shariah complaint banking products

Real estate:
- Is the property boom over? Apartments are going vacant while office spaces are full, and what impact will that have on banks holding mortgages and real estate investment portfolios? Hat tip Kamau
- Tororo cement of Uganda will construct a cement factory in Kitengela
- The Ministry of housing to construct 526 houses for civil servants in Ngara phase II

Awards & events:
- East Africa's most respected company crowned this weekend in Tanzania
- Bank awards by Thinkbusiness.co.ke to be awarded on 5th December
- Strathmore University hosts a microfinance seminar starting November 23
- An ICT outsourcing expo is being held at the safari park hotel from November 27.
Opportunities:
- Equity Bank: business growth & development managers, credit managers, archives & record manager. Details online. D/L is 30/11
- Ernst & young: managing director E&Y advisory services ltd (EYAS) details online. D/L is 7/12
- ICPAK: business & professional development officer. Apply to icpak@icpak.com by 30/11
- KTN TV onscreen positions - full & part time. Apply to screen@eastandard.net by 23/11
- KTDA; General manager trading, head of strategy & planning, Network administrator, treasury & trade finance officer, marketing executive. Apply to recruitment@ktdateas.com by 26/11

8 comments:

just what? said...

On real estate, the boom may be over for constructers or owner-builders, but is it for retail investors? if the REIT to be listed at the NSE in april goes through,dont you think the bubble would start to rise all over again?

Anonymous said...

The real estate boom has not yet been experienced fully. following the opening of the Mombasa Road, Kenya is yet to see The bubble. Mombasa Rd. is going to blow up in the coming two years depending on the political will of the incoming government.Guys with land in Syokimau and adjacen areas are already getting offers of upto .8M for an eigth of an acre but in the long run Retail investors are the ones that benefit.

Anonymous said...

Latest Emerging Details

A Disturbing new story has emerged from the Kibaki's birthplace in Nyeri,Kenya. Its a story never told before about the reason for the death of Kibaki's father. Mzee Karauri,speaking to a news reporter in Nairobi in November said that one day in the 1980's,Kibaki had hatched a plot to kill the then president Daniel Moi. A bomb had been placed in a chartered Kenya Airways plane that was to carry the president to a meeting in Ethiopia. Kibaki was responsible. Moi,who had an airtight intelligence network got hind of this plot. The former president was known to hit back hard when betrayed. He announced at the last minute that Kibaki represent him in Ethiopia. Kibaki was terrified. He badly needed a reason not to travel to Ethiopia,and it better be a good one. At about the same time,his father was ailing at a village in Nyeri. Kibaki is reported to have began a well executed plot that ended up with his father being killed. He then called Moi to inform him of his "loss".

Cosequently, Kibaki escaped by sacrificing his father. The bomb was defused, but from then on, Kibaki knew that he owed Moi his life and that he would do Moi's bidding. That's why Kibaki willingly split Kikuyu votes in 92 at Moi's bidding, this was supposed to be the payback for the attempt on Moi.

Patriot said...

Steadman Cooking up Numbers.

A casual addition of President Kibaki’s support per province as released on Friday then divided by eight (the number of provinces) showed that Kibaki had scored 39.5 per cent, Raila had 47.6 while Kalonzo had 8.5 per cent.

http://eastandard.net/news/?id=1143977974&cid=159

Presidential voting by province
Province Kibaki Raila kalonzo
Nairobi 46.3 39.3 12.1
Central 92.8 5.0 2.0
Coast 34.7 51.5 9.7
Eastern 48.9 6.1 43.8
Nyanza 11.9 85.3 1.8
Rift Valley 39.3 55.8 3.9
Western 20.7 72.8 1.4
North Eastern32.2 64.4 3.4
Total 43.2 43.6 11.4

Kibaki average: 46.3+92.8+34.7+48.9+11.9+39.3+20.7+32.2=326.8/8 = 40.85

Raila averages: 39.3+5.0+51.5+6.1+85.3+55.8+72.8+64.4=380.0/8 =47.525


The weighting has already been taken care of by using a representative sample size based on registered voters per province. The larger the registered population in a province the larger the sample size!

That means that the results can be deduced by simple addition and division in two ways:

1. Because the sample sizes have been weighted you can add the total number of votes of each presidential candidate and divide by the total votes to get the percentage of the candidate!
2. Because the sampling has been weighted you can add the percentage provincial totals of each candidate and divide by the number of provinces.

Anonymous said...

any of u chaps have access to the safaricom prospectus, that we are hearing something about?

pundamilia

gishungwa said...

I agree with you on the partnering bit i believe that is the way to go especially in cost saving strategies.
Maybe from the examples you have provided we will use them as case studies.

Ps: happy blog-versary.You have been very educational in terms of stocks, AGM's et al.Keep up the good work, we are lurking and learning.

Anonymous said...

anyone with any insight into the safaricom prospectus: its supposed to have some really exciting info. eg. the story run by the east african on the different pricing proposals. by the way,banks what are yor thoughts on this is it a workable idea? would the 'foreigners' stand for it?

that pesky reporter dude.

bankelele said...

just what? real estate has done very well for investors, but theres a glut in some sreas now and the buyers just aren't there locally
- Mombasa road has much more potential

Anonymous: prospectus should be out shortly, with all teh allocations.

gishungwa: Broker offices are empty now, till Safaricom comes - during which we will again compalin about the crowds and crappy service. What about after?
- Thanks for the wishes

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