![]() SG: The investor would need to open an account with a local stockbroker who will in turn open a Central Depository and Settlement Corporation (CDSC) account for them. How would I do so? Can you walk me through the account-opening process? Let’s suppose I am a US-based investor and want to buy shares of a Kenyan stock. In the short term, foreign investors can capitalize by investing in the weak shilling and seek exit points as it strengthens against the US dollar. It offers foreign investors exposure to the Kenyan economy, and - because many listed firms have expanded beyond Kenya’s borders - it also serves as an entry point to the regional economy. In my view, the NSE is an ideal frontier market. This trend continued in the first and second quarter of this year, which indicates that economic growth is still on course.Ĭonsidering that a majority of stocks currently trade at P/E ratios below their respective sector P/E ratios, and that 15 of the 29 largest-cap companies offer dividend yields above 3%, there is an obvious mismatch between stock prices and company fundamentals. Only 13 out of 48 active stocks trade above their year-end levels.īut financial results for the 2010 fiscal year indicate that listed firms - especially the financial sector companies – enjoyed explosive bottom line growth. The situation was further compounded by increased political uncertainty due to the MENA crisis and the trials at the Hague of individuals suspected of instigating violence in Kenya following the 2007 election.Īs a result, despite healthy turnover levels, stock prices have suffered over the last six months. These factors include a weakening currency (which has finally begun to stabilize), escalating fuel prices, a surge in local liquidity prompted by heavy bank lending to the private sector, and food inflation caused by the region’s persistent drought. Samuel Gichohi, Senior Research Analyst at NIC Securities This situation is a result of various factors that have converged to push stock prices to levels that are out of whack with the fundamentals on the ground. Samuel Gichohi: The Nairobi Stock Exchange (NSE) is currently a buyer’s market which presents foreign investors with massive bargain opportunities. Why should investors be investing in Kenya now? The Nairobi Stock Exchange hasn’t been a great performer the past few years. He generously agreed to help us navigate the process of opening a Kenyan brokerage account and to share his views on the best bargains currently on offer at the Nairobi Stock Exchange. Samuel Gichohi is a Senior Research Analyst at NIC Securities, a division of Kenya’s NIC Bank ( NICB:KN). ![]() ![]() Some intrepid readers may now be wondering how to buy shares on Africa’s smaller stock markets. ![]() Back in June, we looked at ways to invest on the Johannesburg Stock Exchange through US discount brokers. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
May 2023
Categories |