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"Muru wa Njeri" Silver Member  |
Nigeria Stock Exchange (NSE)
How The Cookie Crumbles - Our Lesson(s) The crash of Africa's 2nd largest stock market (after JSE and Cairo SE) is a reality! The financial sector regulators of Africa's most populus nation are left with crumbles of the biggest market South of Sahara north of Limpopo. What happened The NSE index has been on a down ward spiral since March 2008 the index has come down by 37% reducing the market cap by USD 30 Million in the period despite Nigerian authorites assurances the prices have consistently been on a down ward trend. What caused it There are many and varied reasons offered for the state of affairs and there in lies the lessons for Nairobi stock exchange. It is sad that the crash is comming at a time that Capital markets are beginning to play a vital role in the growth of African economies. Some of the reasons offered are 1. Investor fatigue this fatigue is caused bu huge amounts raised in primary (read IPO) during tha last two year. We may relate this to our own Nairobi Stock exchange (Kengen,Mumias,Safaricom) up comming coop bank, NBK etc 2. Investors gearinmg up for various share offerings including retail investors who have taken up loans to finance their subscriptions. Does that sound familliar? 3. General price pressure internationally that is happening even in developed markets. NSE ? 4. Uncertainity of economic policies and reforms 5. Political instability - Niger delta. Now with the benefit of what happened in Nigeria can Our own Exchange stand the test? In kenya the following needs to be considered 1. We have an acting finance minister. 2. Trading rules are not solid 3. Errant brokers ( Francis Thuo, Nyaga stock brokers) 4. Speculation by foreign investors (Safaricom?) Financial market are under written by Investor confidence it is time Jimnah Mbaru and his team pulled their socks up or we are headed the same way. Maisha ni ujaliwavyo si utakavyo |
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"Ithe wa Muthoni na Jayson" Platinum Member |
This will be sad, very sad "mûthuri aikarîire njûng'wa onaga kuraya kûrî kîhîî kîhaicîte mûtî" |
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"Muru wa Njeri" Silver Member |
Add Discount brokers to the NSE and you have your answer. Divest now my dear brother/sister paper wealth is being wiped out in seconds. The financial crisis is advancing it gaining momentum with every step (ask Germany) by the time it gets to Africa it will sweep all the financial market clear. I am not a prophet of doom but I can see It happening.
This is the time to safe guard value. It is time to buy that kamugunda you have been thinking of, plant potatoes on it my dear because food prices will go through the roof. do not say you were not warned, take courage though in every difficulty there are opportunities. Maisha ni ujaliwavyo si utakavyo |
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"Ithe wa Muthoni na Jayson" Platinum Member |
Are we out of the quagmire? The NSE 20-share index has started showing some signs of improvement with individual counters showing some improved trading. Are these signs of things to come or is it too soon to celebrate?
"mûthuri aikarîire njûng'wa onaga kuraya kûrî kîhîî kîhaicîte mûtî" |
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"Ithe wa Nyambura na Wambui" Platinum Member  |
NSE is a risky venture. Is there any reason to trust the main players there?
Emotions are the greatest enemy of rational arguments |
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"Ithe wa Njeri" Platinum Member  |
sometimes i lck words to describe this market of ours. sometime ago, Crown Berger's share price dipped from 38 to 19 bob. CMA as usual just released a statement saying that was a technical hitch and that investigations had been initiated, and before the dust was over, EAPC's slumped to 62 from 108 and what did CMA do, another statement of 'technical hitch'. Just last year, CFC's shares shot by 180% after the announcement of merger plans......do u pity the wanjikus who rushed in to buy at that price? well, i think CMA doesnt.
Just a few weeks ago, another technical hitch occured that delayed the market opening by some hours...a day after that tech hitch, EB and HFCK's shares shot by 40%and 38%....its all in the 10% rule but clearly, someone is taking poor wanjiku for a ride... All stock brokerage/investment banks are run by owner managers These owner managers sit at NSE board there is high level of insider trading in our market. woe unto you if you are not strategically positioned. CONFIDENCE is trying to fart when you are suffering fron diarrhoea ... Robert Mugabe |
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"Ithe wa Nyambura na Wambui" Platinum Member |
Seems like the counters are quiet! Can the financial market gurus appraise us on the state of the market?
Emotions are the greatest enemy of rational arguments |
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"Muru wa Njeri" Silver Member |
Before the gurus come in I would like to comment that the NSE is at the verge now. Investor confidence is at the lowest, brokers have financial problems from the extended bearish run, the very credibility of brokers is being questioned. Pension Schemes who are the major investors have lost money. The econony is battered, productivity is low prices are shooting thrugh the roof.
In one word gloom, for one moment I thought the darkest hour had come before I learnt about Suntra Investment Bank. NSE is in absolute mess!c my advice would be hold and pray. Maisha ni ujaliwavyo si utakavyo |
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Silver Member |
The greatest reap off. Investors in the NSE have lost over 30 Billion Shillings, much of it to back office fraud!
Someone heeeeelp! Help! |
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"Muru wa Njeri" Silver Member |
Ndaguthaitha ataramu a biashara maraiga Tsunami is coming andu mabutuo mawira na kambuni ihare. Thogora wa nyumba ugue nacio mbeca ciage kiene.
Kambuni iria ithodekaga non essensial products (ta kegi), na cia exports ohamwe na mikawa ya atalii mehandu hairu! Maisha ni ujaliwavyo si utakavyo |
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Kikuyu.com KIKUYU.COM Forums General Discussions Business/Finance/Investing/Debt Issues Market melt down
KIKUYU.COM Forums General Discussions Business/Finance/Investing/Debt Issues Market melt down