
Two weeks at NSE
Top Gaining and Loosing stocks in the last two weeks
The last time I wrote something about NSE I was so mad at everyone..brokers, CMA, and NSE management to an extent that i suggested people get their money out of NSE and keep it under their mattresses. In the end i got very sound advice from many prominent bloggers and went back to the market to monitor the situation there.
Apart from E.A Portland Cement, which recorded the biggest drop, Car and General, Pan Africa Insurance NIC bank and Coop bank, all the other counters made some significant gains in that period. The highest being recorded by Equity Bank followed by Nation Media Group. Some commentators and analysts still believe it is not yet time to pop the champaigne. An article by Reuters on the Nation.co.ke website http://www.nation.co.ke/business/news/-/1006/543596/-/j177hjz/-/index.html reports that the Kenyan stocks will remain under pressure in week ahead, supported by the fact that Nairobi Stock Exchange’s main index, the NSE-20 , fell to 2,375.01 last Friday compared with the previous week’s close of 2,474.8 points
So the overall outlook is better now and i guess we are heading to that period where people will start regretting why they did not buy the shares when they were very low… Well there is still time to do so now
Good Stuff keep us posted
I have followed the happenings in the NSE for a number of years; 8 to be exact. Probably not enough to comment on the fundamentals, but good enough to comment on the people, behaviour and the numbers. January/February 2008 surely present the best time for first time share buyers. The Mumias and Safaricom shares were at their lowest. With both shares trading at below KES 5 there is no reason for any young person out there with a few quids did not take up the opportunity. Last week the market recorded a positive outlook with more than 80% of the counters showing an appreciation in value. However as the curve is just changing its shape, investing now would still expose someone to great future gains.
However, for me, the problems in the market are the same old problems put under a magnifying glass. There has always been unexplained stock movements in large numbers. When some millionaire buys a million shares from a counter, the low supply leads to high demand effectively. The demand then leads to higher prices, in an information efficient stock market this would pose no problem. NSE is by no means efficient and thus a good proportion of our problems. With the share orders taking upto 3 weeks to be filled means that a buy order placed when the share price is falsely inflated is filled with a much lowerly priced share. The investor still pays the same high price for the share and the broker keeps the difference. It might be just a shilling, but for more than 20 Million share orders placed, that is a good tiding. As a result the brokers have no interest in shortening the lead times. But i got to say that Equity is doing a good job……….dont have to complete typing my thoughts, sorry!
sorry…typo error meant January/February 2009, of course SAFCOM was not floating in Jan/Feb 2009!
@Sam: I will, monitoring the market closely
@No Name Person. very nice and knowledgeable observation.
Were did you find these informations?
The information is based on the direct observation of the market and daily tracking of each stock
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