Difference between revisions of "Nairobi Securities Exchange"

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{{Infobox_Company
{{Infobox_Company
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| company_name = Nairobi Stock Exchange
 
| company_name = Nairobi Stock Exchange
| company_logo =   [[Image:NSELogo.jpg]]
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| company_logo = [[Image:imgname.jpg]]
| key_people =    
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| key_people = Chief Executive Peter Mwangi, Chairman James Wangunyu.
| foundation =    
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| foundation = 1954 by incorporation
| location =      
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| location = Nairobi, Kenya   
| products =      
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| products = NSE-20 Share Index and NSE All Share Index (NASI). Trades Kenya's listed equities, preference shares, corporate and government [[bonds]]. 
| homepage= http://www.nse.co.ke/newsite/    
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| homepage =   http://www.nse.co.ke/newsite/index.asp
 
}}
 
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The Nairobi Stock Exchange is a [[stock]] market that is commonly known as the NSE.
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There are three investment market segments at the Nairobi Stock Exchange namely:
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*Main Investment Market Segment (MIMS);
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*Alternative Investment Market Segment (AIMS); and
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The Nairobi Stock Exchange (NSE) is the only exchange in Kenya trading listed [[equities]] and is one of the largest in sub-Saharan Africa. It was a private operation until 1991 but in 1994 allowed investors to open and settle electronic accounts and trade regular hours. The NSE has been regulated since 1989 and now cross-lists equities with neighboring bourses but has been rocked in recent years by the collapse of two large affiliated brokerages.
*Fixed Income Securities Market Segment (FISMS).
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== History ==
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The NSE began operating as informal market for Europeans only in the 1920s but became a [[corporation]] in 1954 and nine years later allowed Kenyan natives to join the market and trade.<ref>{{cite web|url=http://www.nse.co.ke/newsite/pdf/Year%202008-%20General%20Information/NSE%20Factbook%202008%20Nov%202008.pdf|name=Fact Sheet|org=NSE|date=January 15, 2009}}</ref> It began functioning more formally in 1989 when its regulator, the [[Capital Markets Authority of Kenya]] (CMA), was officially established. In 1991 the NSE introduced an open-outcry system of trading and in 1995 relaxed restrictions on foreign ownership of listed companies. The following year marked the NSE's largest-ever issue of 235,423,896 shares of newly-privatized Kenya Airways at 11.25 [[Kenyan shilling]]s per [[share]].
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Since then the NSE has grown to become the continent's fourth-largest [[exchange]] by trading volume and fifth largest by [[market capitalization]] as a percentage of GDP.<ref>{{cite web|url=http://www.answers.com/topic/nairobi-stock-exchange|name=Nairobi Stock Exchange|org=Answers.com|date=January 15, 2009}}</ref> It cross-lists some of its equities - most notably Kenya Airways - with neighboring East African bourses the [[Uganda Securities Exchange]] and the [[Dar es Salaam Stock Exchange]] in Tanzania.
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== Products ==
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The NSE had developed two benchmark indexes to measure the performance of its [[listed]] equities: the long-established [[NSE 20 Share Index]] (NSE-20) and the more recent [[NSE All Share Index]] (NASI). The NSE-20 was introduced in 1964 to measure the performance of the 20 best performing [[blue chip]] listings and has been altered over time to reflect market changes. The NASI was introduced in 2008 to capture the overall market and is calculated using all shares traded on a single day. Today's NSE contains three listing sectors: Main Investment Market Segment (MIMS) for larger listed companies, Alternative Investment Market Segment (AIMS) for smaller [[OTC]] issues and Fixed Income Securities Market Segment (FISMS) for corporate bonds.
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== Key people ==
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NSE Chief Executive [[Peter Mwangi]] was appointed in November 2008, one month after predecessor Chris Mwebesa resigned the position.<ref>{{cite web|url=http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLK42032020081120|name=Kenya's bourse appoints new chief executive|org=Reuters|date=January 15, 2008}}</ref> Mwangi was formerly managing director of Centum Investment, a listed company formerly part of Kenyan government-lending agency the ICDC that invests on its own [[account]] in other listed East African equities.<ref>{{cite web|url=http://www.icdci.co.ke/default2.php?active_page_id=371|name=Who we are|org=ICDCI.com|date=January 15, 2008}}</ref> NSE Chairman James Wangunyu is a graduate of George Washington University and is also chairman and managing director of Standard Investment Bank Limited.<ref>{{cite web|url=http://www.nse.co.ke/newsite/nse_directors.asp?cat=edirector|name=James Wangunyu- Chairman|org=NSE|date=January 15, 2008}}</ref>
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== Latest news ==
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As of October 2008, investors on the NSE lost about 40% of their [[capital]] compared to a year earlier, although not all was directly related to the corresponding global [[credit crisis]] and financial markets meltdown. Recent analysis shows that the NSE was already in decline  early in 2008 following the collapse of [[Nyaga Stockbrokers]],<ref>{{cite web|url=http://www.bdafrica.com/index.php?option=com_content&task=view&id=11330&Itemid=5865|name=NSE Boss resigns|org=Daily Nation|date=January 15, 2008}}</ref> one year after the collapse of another retail-based brokerage, Francis Thuo & Partners.  
  
 
== References ==
 
== References ==

Revision as of 23:17, 15 January 2009

Nairobi Stock Exchange
File:Imgname.jpg
Founded 1954 by incorporation
Headquarters Nairobi, Kenya
Key People Chief Executive Peter Mwangi, Chairman James Wangunyu.
Products NSE-20 Share Index and NSE All Share Index (NASI). Trades Kenya's listed equities, preference shares, corporate and government bonds.
Website http://www.nse.co.ke/newsite/index.asp

Template:Infobox Midpage Need Sponsor

The Nairobi Stock Exchange (NSE) is the only exchange in Kenya trading listed equities and is one of the largest in sub-Saharan Africa. It was a private operation until 1991 but in 1994 allowed investors to open and settle electronic accounts and trade regular hours. The NSE has been regulated since 1989 and now cross-lists equities with neighboring bourses but has been rocked in recent years by the collapse of two large affiliated brokerages.

History

The NSE began operating as informal market for Europeans only in the 1920s but became a corporation in 1954 and nine years later allowed Kenyan natives to join the market and trade.[1] It began functioning more formally in 1989 when its regulator, the Capital Markets Authority of Kenya (CMA), was officially established. In 1991 the NSE introduced an open-outcry system of trading and in 1995 relaxed restrictions on foreign ownership of listed companies. The following year marked the NSE's largest-ever issue of 235,423,896 shares of newly-privatized Kenya Airways at 11.25 Kenyan shillings per share.

Since then the NSE has grown to become the continent's fourth-largest exchange by trading volume and fifth largest by market capitalization as a percentage of GDP.[2] It cross-lists some of its equities - most notably Kenya Airways - with neighboring East African bourses the Uganda Securities Exchange and the Dar es Salaam Stock Exchange in Tanzania.

Products

The NSE had developed two benchmark indexes to measure the performance of its listed equities: the long-established NSE 20 Share Index (NSE-20) and the more recent NSE All Share Index (NASI). The NSE-20 was introduced in 1964 to measure the performance of the 20 best performing blue chip listings and has been altered over time to reflect market changes. The NASI was introduced in 2008 to capture the overall market and is calculated using all shares traded on a single day. Today's NSE contains three listing sectors: Main Investment Market Segment (MIMS) for larger listed companies, Alternative Investment Market Segment (AIMS) for smaller OTC issues and Fixed Income Securities Market Segment (FISMS) for corporate bonds.

Key people

NSE Chief Executive Peter Mwangi was appointed in November 2008, one month after predecessor Chris Mwebesa resigned the position.[3] Mwangi was formerly managing director of Centum Investment, a listed company formerly part of Kenyan government-lending agency the ICDC that invests on its own account in other listed East African equities.[4] NSE Chairman James Wangunyu is a graduate of George Washington University and is also chairman and managing director of Standard Investment Bank Limited.[5]

Latest news

As of October 2008, investors on the NSE lost about 40% of their capital compared to a year earlier, although not all was directly related to the corresponding global credit crisis and financial markets meltdown. Recent analysis shows that the NSE was already in decline early in 2008 following the collapse of Nyaga Stockbrokers,[6] one year after the collapse of another retail-based brokerage, Francis Thuo & Partners.

References

  1. Fact Sheet. NSE.
  2. Nairobi Stock Exchange. Answers.com.
  3. Kenya's bourse appoints new chief executive. Reuters.
  4. Who we are. ICDCI.com.
  5. James Wangunyu- Chairman. NSE.
  6. NSE Boss resigns. Daily Nation.