Investors Diary
Dear Investor,
Welcome to sample a collection of my thoughts, research, financial advice, gut feeling and other works that i love to share with you from time to time.
If you are a stock market investor or otherwise and would like to invest in the Kenyan stock mart, the Nairobi Stock Exchange, you can always get free and helpful financial and investment advice on this site.
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More latters as we strive the world of investing fun , more fun and alot of fun.
The Kenyan capital markets is now under focus against a backdrop of shrinking investor confidence and continually droping market index in defiance of any fundamentals. Other stockbroking firms including Suntra Investment Bank are struggling over pending lawsuits due to illegal selling of investors shares.
CFC Financials had also been sued over illegal short selling of a client's shares and the landmark ruling requiring them to pay back Millions is set to change the financial landscape and send shivers down the spines of other struggling stockbrokers who may have been doing the same scheme in full glare of the CDSC and the CMA.
Radical Surgery
The current NSE meltdown has brought to the fore the urgent need for radical surgery of the Capital Markets Authority and the NSE as well as stringent regulations on stockbrokers and investment banks inorder to bring back the much needed market rescusitation.
Stockbrokers
Since the collapse of Francis Thuo, Discount and placing of Nyaga under statutory management many had been wary of venturing into the market worst hit being foreign investors. Infact foreign investors and Kenyans in Diaspora have been flooding the market with orders to sell stock as they seek safe havens to hedge against risk associated with global financial crisis.
Facts
The sharp drop in the NSE 20-Share Index from over 6000 to 2927 by Monday after an unprecedented rise of 279% by December 2007. Market capitalisation has dropped from 1.3 Trillion in June 2008 to slighty over 700 Billion this week.
Reforms
Though the capital markets is said to have been pursuing reforms in the capital markets, radical surgery of stockbrokers, investment banks, Nairobi Stock Exchange and Capital Markets Authority is urgently needed and the time is NOW!
The BD has a detailed story of the simmering wars between them and the Capital Markets Authority over regulatory measures taken to stamp more authority in order to ensure that investors confidence at the market is restored.The licensing war has seen the exit of CMAs Chairman.
Undervaluation
You may recall that currently there has been jitters in the market over the supposed undervaluation of various counters as well as the reluctance of various foreign investors to remit their cash for investments in the emerging market.
There is more than meets they eye in this saga. For a long time CMA has been a toothless bulldog in hibernation.
With various cases of grand corruption including the Triton saga confidence in our emerging market might be waning by the day and more still needs to be done for investments opportunities to attract rallied prices and increased attention in 2009.
Triton Saga
The case of Triton and Kenya Commercial Bank loan has led to price scare for the counter at the stock market as the mystery of missing millions deepens by the day.
The Kenya Commercial Bank has sued Triton Petroleum Company, under receivership, for Sh2 billion guaranteed through various debentures to import crude and refined oil to the Kenyan market.
7 Billion
The lump sum is part of Sh7 billion the oil dealer owes other banks among them Eastern and Southern African Trade and Development Bank and a chain of oil companies.
Convergence
Bankers could soon be allowed to provide a diverse range of financial products including insurance services, if draft amendment proposals to the Banking Act prepared by Central Bank (CBK) are approved by the Attorney General.more
