How do they achieve that ? Through a series of measures and rules:

-Listing of the NSE itself  to help the value of the exchange

-Requiring all companies to disclose financial information on their website ( a good example is First Bank ).

-To encourage expansion of the fixed income market.Nigeria central Bank has already hiked  the rates on fixed income securities and cut taxes.

-To push pension funds towards stock investments which are limited to a total of 12 billion dollars so far.

-To combat risk averse attitude among local retail investors by producing ,with Nollywood film directors ,TV shows that promote a certain business attitude.

-Introduction of a new code of corporate governance

New listing of companies could also  bring in that new blood so much needed to move towards the goal.

The state oil company is expected to float its joint venture companies on the NSE,the same move is expected in the power industry where some 19 new electricitygeneration and distribution companies are expected to attempt to raise the 50 billion dollars investment capital required on the NSE.

Other companies wished to list on the NSE include, Shell,Exxon and MTN Nigeria.

Nigeria stock market quick profile

Capitalisation of about 40 billion dollars

217 companies listed on the NSE

Five million Nigerians out of a population of 165 million are shareholders

|Source rinted version of The Africa Report |

Related articles

• The Nation Safe for Investment, SEC, NSE Re-Assure Investors (briefingnotesnigeria.wordpress.com)
• SEC axe Nationalized banks (briefingnotesnigeria.wordpress.com)

The transport company had a decline in sales to 803 million ($11 million) down from (922 million in 2008) and it’s four year profit streak was snapped as it lost 53 million ($700,000) before tax, down from a profit of 112 million the year before..”

Their 2009 outlook is the following:”2009 outlook They noted that in the half year of 2009, sales and profits are ahead of budget; the company has undertaken efficiency measures taken include installation of vehicle fleet management & tracking system, outsourcing of some services, investment in new vehicles to support contracts, increase in warehouse utilization etc. By y year end they project to have a profit which will be distributed as follows: to pay down overdraft (31%), new investments (29%), dividend (25%) and cash flow (15%”

Go onto Bankele site to read the shareholder Q&A and  more

The  Kenya Capital Markets Authority (CMA) has made law the following  new regulations

:

- Sets minimum share capital for stockbrokers at Kshs. 50 million (~$650,000) and investment banks at 250 million (~$3.25 million) some stockbroker are investment banks in name only name
- Agents may work for one stockbroker only and may not handles client cash
- They must use International Financial Reporting Standards (IFRS)for reporting
- They must publish audited accounts and ½ year un-audited accounts in newspapers and also dispaly the same in their branches so by August 09 we should get a clearer picture of who’s up or down
- They must obtain indemnity insurance
- They are to notify the CMA before appointment of executives, directors, and auditors as well as prior to branch openings/closing

source

Go to Bankele who has more to say about the impact these rules have.

The use of mobile phone technology in the provision of financial services is about to alter how shares are traded in Kenya. Standard Investment Bank is leading the way after launching a mobile phone based share trading service dubbed Easy Hisa. Through that service, an investor can make buy or sell orders and make follow up enquiries on their orders through their mobile handsets.

Related articles by Zemanta

• Talking Mobile Banking in Kenya (whiteafrican.com)
• Africa, Plugged In (freakonomics.blogs.nytimes.com)

Nigerian Stock Market

[Source]