What's your best idea for AFRICA? | Africa Rural Connect
Posted using ShareThis
Thursday, September 10, 2009
Wednesday, September 9, 2009
Cross-listing in Sub-Sahara Africa
The cross-listing of companies started when firms from Kenya,listed in both Uganda and Tanzania stock exchanges respectively. The signing of East Africa community Treaty in 1999 has gained much prominence in the recent past.
The firms that led the pack include Equity bank,Kenya Airways,East African Breweries Ltd and Jubilee Insurance all Kenya firms.
Rwanda and Burundi has since joined the fray to make a bigger trading block in Sub-Sahara Africa an interesting region to watch in the near future.
The firms that led the pack include Equity bank,Kenya Airways,East African Breweries Ltd and Jubilee Insurance all Kenya firms.
Rwanda and Burundi has since joined the fray to make a bigger trading block in Sub-Sahara Africa an interesting region to watch in the near future.
Tuesday, September 1, 2009
Mood of the mart - Kenyan equities
The stock market appears to have "bottomed-out" with some good gains recorded in June/July. A number of counters including Athi River Mining,Access Kenya,Barclays Bank, East African Breweries,Diamond Trust Bank,BAT Kenya and Kenya Reinsurance rose above their closing prices in December 2008 and March 2009.
As investors sentiment improved in the global markets,foreign participation in the local equities market increased. Foreign investors accounted for over 50% of the total market turnover in Q2 2008.The heavy trading of Safaricom shares on listing in Q2 particularly contributed to the distortion in the turnover traded.
During the 1Q 2009, bank released results that reflected what was expected in the coming days.Although earnings improved by 20%,the growth momentum has slowed down mainly as a result of low economic activity and less aggressive lending by financial institutions.In the same period,Safaricom released its full year results for ended March 2009 and its profitability declined by 24%,on account of increased competition in the industry as well as a shrinking share of consumers' disposable income.
If the fiscal measures proposed in the 2009/10 budget are implemented, they could provide the much needed stimulus to economic activity and boost overall profitability of listed companies.Although companies are still likely to face margin pressure due to rising input costs, a general improvement in the economic outlook should provide the impetus for higher earnings growth in 2010.
Capital market regulatory reforms unveiled by the Finance Minister during the budget are expected to play a crucial role in improving investor's sentiment. The proposed changes to rise minimum capital requirements for stock brokers and investment banks should strength these firms.The requirements of players to have professional indemnity insurance would also improve investor protection.
Going forward,there is likely to be increased demand for equity investments especially from long-term investors on account of the attractive market valuations.Although the stock market has risen by 17.5% in Q2, valuations are significantly below where they were 12 months ago.The market was trading at an average earnings multiple of 12.6x at the end of the quarter compared to 23.9x at a similar period last year.
As investors sentiment improved in the global markets,foreign participation in the local equities market increased. Foreign investors accounted for over 50% of the total market turnover in Q2 2008.The heavy trading of Safaricom shares on listing in Q2 particularly contributed to the distortion in the turnover traded.
During the 1Q 2009, bank released results that reflected what was expected in the coming days.Although earnings improved by 20%,the growth momentum has slowed down mainly as a result of low economic activity and less aggressive lending by financial institutions.In the same period,Safaricom released its full year results for ended March 2009 and its profitability declined by 24%,on account of increased competition in the industry as well as a shrinking share of consumers' disposable income.
If the fiscal measures proposed in the 2009/10 budget are implemented, they could provide the much needed stimulus to economic activity and boost overall profitability of listed companies.Although companies are still likely to face margin pressure due to rising input costs, a general improvement in the economic outlook should provide the impetus for higher earnings growth in 2010.
Capital market regulatory reforms unveiled by the Finance Minister during the budget are expected to play a crucial role in improving investor's sentiment. The proposed changes to rise minimum capital requirements for stock brokers and investment banks should strength these firms.The requirements of players to have professional indemnity insurance would also improve investor protection.
Going forward,there is likely to be increased demand for equity investments especially from long-term investors on account of the attractive market valuations.Although the stock market has risen by 17.5% in Q2, valuations are significantly below where they were 12 months ago.The market was trading at an average earnings multiple of 12.6x at the end of the quarter compared to 23.9x at a similar period last year.
Subscribe to:
Posts (Atom)
Posts
