Connect with us

Business News

Stock market will weather political storm: NSE CEO

Mr Geoffrey Odundo said the regulator will work closely with other stakeholders to increase access and education for retail investors through the use of technolo

Published

on

Nairobi Securities Exchange will withstand political shock and emerge stronger, NSE chief executive Geoffrey Odundo has said.

He noted that the ongoing political standoff had impacted negatively on the performance of Kenya’s stock market but reiterated Kenya’s stock market resilience and its ability to recover much faster from such shocks.

“We’re hopeful that our own political issues will be put to bed soon. We are looking at a couple of IPOs next year and the government is also looking at ways to restart the privatisation programme. We believe that if we get two companies from the infrastructure and energy sectors, interest from the corporate side will spark and this will help in market recovery,” he said.

Mr Odundo was speaking at the 7th Annual EFG Hermes London Conference, where opportunities in the Nairobi Securities Exchange were discussed on-stage with a large gathering of global investors, fund managers and financial institutions.

Noting the recent development of domestic capital pools in the form of buoyant pension and mutual fund industries will help in boosting market liquidity.

“We are very committed to having pension funds enhance liquidity in the market. We are looking at how direct property ownership can be reduced from 20% to 2% to support the Real Estate Investment Trust (REIT) market,” Mr Odundo said.

 Increasing access

Mr Odundo said the regulator will work closely with other stakeholders to increase access and education for retail investors through the use of technology.

“Kenya has a very advanced mobile money platform that we have successfully leveraged. We are encouraging the rollout of products on that platform. This year, we launched a retail mobile bond for the government of Kenya. That’s just a start in educating the public on capital market securities,” he said.

READ: Best matatu Sacco to win Sh5m Isuzu bus

“The second level is to use the broking network to aggregate these clients. A lot of brokers have now developed online trading platforms to encourage real-time access and transparency. We have a very young population; we encourage simulation trading before even going into live trading as part of an educational, entertaining initiative. Those are the key steps in our efforts to increase retail investors – education and access for the investors.”

 The 7th annual EFG Hermes London Conference, the largest MENA and frontier investor conference recorded the attendance of global investors with more than $9tn in aggregate assets under management and a large line-up of senior executives from leading listed companies based in MENA, sub-Saharan Africa, and Asia.

“Investors are increasingly seeking opportunities in Frontier Emerging Markets that will drive the lion’s share of global growth over the coming decade. EFG Hermes’ objective is to bridge the gap between global capital and opportunities in high growth markets like Kenya in a holistic manner,” said EFG Hermes Frontier Chef Executive Officer Ali Khalpey.

Business Today is the leading independent online business website in Kenya. Started in 2012 by a veteran business journalist, it has a huge following both in Kenya and abroad. It covers various business and related issues. Email editor at: [email protected]

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Person of Interest1 day ago

Young sociologist who heads health docket in Turkana

Moses Natome, who has been re-nominated by Governor Josphat Nanok, says he a team player and has in the past...

Health1 day ago

Kenya faces Sh103b annual shortfall for universal health coverage

Health PS Julius Korir says so far the government is only able to afford Ksh 12.4 billion annually to cater...

NEWS1 day ago

Supreme Court explains why it threw out petitions

The court ruled that NASA candidate Raila Odinga did not formally withdraw from the election but only declared his intention to withdraw

Editorial1 day ago

Time Raila stopped being a political enigma

Election seasons must be predictable so that the people and their chosen government can move on with the business of nation...

Analysis1 day ago

Nairobi-based US diplomat quits, blasts Trump

In a scathing resignation letter, Elizabeth Shackelford tore into the Trump administration and Secretary of State Rex Tillerson for undermining the work...

LIFESTYLE3 days ago

Half of Govt workers are drug addicts

NACADA survey shows alcohol abuse among employees in the public sector stands at 57.9 percent, higher than the national average...

Economy3 days ago

Kenya’s economy to ‘bounce back’

Kenya’s economy is set to grow from the current 4.9% to 5.5% and 5.9% in 2018 and 2019 respectively, a...

Opinion4 days ago

Libya slavery scam: Africa has killed its own sun

African states have created the environment in their home countries that have made their citizenry so desperate and hopeless to...

Person of Interest4 days ago

Unique name that inspired KCPE star

As a biology teacher, Harrison Tanga was not fazed when he went to hospital to see his newborn child, unlike...

LIFESTYLE4 days ago

Youth turn to sex to soothe election pain

The struggle to make ends meet has left them disillusioned, apathetic and angry, according to the annual survey of nearly...

Advertisement

Trending