Browsing: Johannesburg Stock Exchange (JSE)

Given these enabling circumstances, KKR offered to buy out RJR and reorganize the business and optimize value from its operations. This initial attempt was not warmly received, and RJR sought other investment companies to purchase it. What then ensued was what members of the investment community call putting the company in play.

This describes a scenario where one company is actively pursued by several suitors who desire to purchase it. In the end KKR triumphed albeit having paid a massive premium for the company. Unfortunately, the company did not realize the gains that it had envisaged it would.

The Nabisco operation of the company was spun off into a separate entity and the tobacco interests were also kept separate. All the gains the company anticipated it would make were swallowed up by tobacco lawsuits so that by 1994 the KKR had all but written off its investment in RJR Nabisco.…

South Africa downranked as investment destination

South Africa has fallen to third place due to its constrained economic growth according to RMB’s “2020 Where to Invest in Africa” report.

But the country still holds its place as Africa’s bastion of a well-developed financial and capital market.
The report said the JSE remained Africa’s most liquid stock exchange with an excess of $1.4 billion traded daily. Which is much higher than Egypt’s Cairo Stock Exchange which trades $44 million a day.

According to RMB report, South Africa also ranked highly on other financial market depth measures such as private credit as a percentage of gross domestic product (GDP), showing that consumers have access to a wider range of financial instruments compared to other African countries.

The report showed, however, South Africa’s ease of doing business ranking in the last few years has slipped but it remains one of the top ten easiest operating environments in Africa.

Also

Nairobi Security Exchange’s top share index-NSE 20 shed some 43.09 points or 1.67 per cent to stand at 2543.59 on Friday, even as volumes rose from the previous trading. The index that tracks blue chip companies at the bourse has been on a downward streak in recent weeks, affecting other indices. NSE market turnover for Friday however stood at Ksh332 million (US$3.2 million) from the previous session’s Ksh179 million (US$1.7 million) as the number of shares traded rose to 12.5 million against 9.9 million posted the previous day. Safaricom was the week’s biggest mover.

Trading at the Nairobi Securities Exchange (NSE) more than doubled this week compared to the previous week, as the market recorded increased investor activities.

Week on week turnover rose Ksh3.7 billion (US$36.3 million) on 102 million shares traded against 51.8 million shares valued at Ksh1.3 billion (US$12.8 million) transacted the previous week.

During the week’s trading which closed on Friday, the NSE 20 share index was up 6.32 points to stand at 2706.78. All Share Index (NASI) shed 0.35 points to settle at 150.12 while the NSE 25 Share index lost 11.08 points to settle at 3637.98.

Banking Sector

The banking sector was busy with shares worth Ksh1.3 billion transacted which accounted for 35.78 per cent of the week’s traded value. Equity Group Holdings actively moved 15 million shares valued at Ksh601 million at between Ksh39.75 and Ksh40.05.

KCB Group moved 11 million shares worth Ksh446 million and closed the …

Kenyan shilling on an upward trajectory boosting investor confidence

After more than three years of waiting, the Nairobi Securities Exchange (NSE) has received regulatory approvals to proceed with the launch of the derivatives market.

This follows the successful conclusion of the Derivatives Market Pilot Test and subsequent submissions to the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK).

READ:Investors to commence derivatives trading at Nairobi bourse

NSE now sees the launch of the Derivatives Market as a significant milestone in the growth and deepening of the country’s’ capital markets and the wider Kenyan economy.

“Derivatives Markets provide new opportunities to investors, enabling them to better diversify their portfolios and allow for the efficient deployment of capital. Furthermore, through the Derivatives Market, investors will be able to form expectations about underlying assets in order to manage the price risks,” NSE Chief executive Geoffrey Odundo has noted.

This initiative makes the NSE the second African Exchange to …