Browsing: Nairobi Stock Exchange (NSE)

Stock market defies disputes over presidential poll results

Trading took place on Monday before Deputy President William Ruto was confirmed the winner of the presidential election, which occurred amidst scenes of chaos and the rejection of the results by four election agency commissioners.

As a result of Odinga’s pledge to legally contest the election results, it is possible that it could be several weeks before a new president is inaugurated into office. This has sparked worries of unrest against the backdrop of rapidly increasing food prices and massive levels of public debt.

Analysts had predicted that there would be a sell-off of shares, which was anticipated to drag the NSE down to new lows.…

The NSE is Africa's third poorest performance stock exchange.

The total value of all equities was estimated to be Sh1.847 trillion as of the end of the year, which is a decrease of Sh2.636 trillion from the beginning of the year. Meanwhile, the NSE main index reached a low point not seen in 19 years due to the departure of foreign investors.

At the end of the trading day, the NSE-20 Share Index reached 1,580 points, a high not seen since 2003.

The share price of Safaricom, which makes up more than half of the value of the stock market, has dropped by 38 per cent since January to a current price of Sh24 per share, down from a price of Sh37.95 per share in January, which has contributed to the fall at the Nairobi bourse.

Due to the stock’s high liquidity and strong business performance, such as profits and dividends, foreigners have exposure to it.…

Understanding the Oil Price Decline and Futures Markets

By Terry Adembesa, Chief Officer, Derivatives Market, Nairobi Securities Exchange

A derivative contract is an agreement to engage in a commercial transaction in which the delivery of an asset is set for the future, while the price and various specifications of the contract are agreed at the time of contract initiation. These markets originated from burgeoning oil and grain markets. In the agricultural markets, these created a need for a farmer to secure a price at one point in time, store the grain, and deliver it at a later point in time.

Despite these markets initially being dominated by agricultural commodities, globally there has been a proliferation of other financial instruments such as currencies, bonds, and stock indices. Although the commodity derivatives markets include very active contracts in oil and precious metals, financial derivatives have remained the most traded instruments in the global derivatives markets.

Types of derivatives include forward …

MMC Africa Law has teamed up with Africa’s international law firm ASAFO & CO to form MMC ASAFO, in a merger likely to shake the continental space.

Kenya’s top commercial law firm MMC Africa Law has teamed up with Africa’s international law firm ASAFO & CO to form MMC ASAFO, in a merger likely to shake the continental space.

In order to provide a unique and integrated offering of top-tier legal services exclusively dedicated to the African continent, the MMC ASAFO team is based in different offices, with a balanced presence in France and in the major African business hubs of Nairobi, Abidjan, Casablanca and Johannesburg.

The merged entities are keen tap on the African Continental Free Trade Area which came into effect this year, congregating over 1.2 billion people in the world’s largest free trade zone.

READ ALSO:How East African businesses are going to lead the AFCTA

According to MMC ASAFO East Africa Team Leader Edward Muriu, African economies are among the fastest growing in the world today with a powerful industrial revolution which is …