Young investors flock online stock trading

    Online trading of shares is attracting a youthful generation of investors who take advantage of the convenience of the internet.Due to a new product from the Nairobi Security Exchange (NSE), it is possible for anyone with shares to buy and sell them online without having to go through stockbrokers. The new system which is available to anyone who opens a trading account with investment group, SBG Securities Limited,links the NSE to back office systems at the offices of stockbrokers and the Central Depository and Settlement Corporation (CDSC).
     The CDSC is the official custodian of clearing and settlement services in the capital markets and ensures investor's transactions are fast,safe and secure. The service comes at a time when more youth are being encourage to trade shares at NSE. In April 2008, the bourse launched the annual NSE Smart Youth Investment Challenge to promote stock market investments among Kenya's young adults. This year's event offered up to Ksh.200,000 cash prizes to participants. The system comes days before the NSE sella 63.5 million of its shares to the public at a price of Ksh.9.50 per share on 23/07/2014.
     To use the service, investors are charged a negotiable commission based on the number of shares they want to trade. A 2.17 per cent commission, which also includes charges paid to NSE and CDSC and an investor compensation fund, is charged for deals worth up to Ksh.100,000. Amounts above the figure attracts a negotiable fee.

Comments

Kenya Economic Outlook

Economic growth is estimated at 4.9% in 2013 and is projected to accelerate to 5.7% in 2014. Having witnessed drastic currency depreciation and rapid inflation in 2011, the economy experienced stability for both indicators in 2012 and 2013 with inflation dropping to a single digit. This stability is expected to continue in 2014. Kenya’s economy continued to recover in 2013 from the slowdown experienced in 2011. Real GDP growth in the year accelerated to 5.2%, 4.3% and 4.6% in the first three quarters of 2013 primarily driven by financial intermediation, tourism, construction and agriculture. Real GDP growth is estimated at 4.9% and 5.7% in 2013 and 2014 respectively. Similarly CPI inflation is expected to remain single digit over the same period. The economy’s short- to medium-term forecast is for sustained and rising growth based on: increased investor and business confidence in the wake of peaceful March 2013 elections; increased rainfall; a stable macroecon...

THE LOOMING CRISIS

The Implications of a Drier, Hotter and More Crowded Future Why is this issue important? The Horn of Africa is one of the world's most food-insecure regions. The eight countries – Djibouti, Ethiopia, Eritrea, Kenya, Somalia, Sudan, South Sudan and Uganda – have a combined population of 160 million people, 70 million of whom (or nearly 44 per cent) live in areas prone to extreme food shortages (1). Between 1970 and 2000, these countries were threatened by famine at least once each decade (1). In the future, the impacts of climate change, as well as growing populations and declining per capita agricultural capacity, are expected to further threaten food security¹. As one of the least developed areas in Africa, there is limited capacity to respond to drought or food crises. To prevent humanitarian emergencies, the Horn of Africa needs to strengthen its ability to build long-term resilience and tackle the root causes of ...

Nigeria's economy is under pressure from oil price drop

Nigeria is Africa's largest oil producer, pumping over two million barrels a day. For decades, the country has relied heavily on the oil sector to bring in taxes and foreign exchange. But the drop in the oil price has knocked the value of the local currency - the naira - by nearly 20%. Those immediately affected are ordinary people, and also the new generation of investors who only entered the oil and gas businesses in recent years.

Biz Hub Africa

Search This Blog