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’
– 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.
– 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
– 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.
– 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 email@example.com by 30/11
– KTN TV onscreen positions – full & part time. Apply to firstname.lastname@example.org by 23/11
– KTDA; General manager trading, head of strategy & planning, Network administrator, treasury & trade finance officer, marketing executive. Apply to email@example.com by 26/11