Nairobi Securities Exchange PLC · NSEKE:NSE

Nairobi Securities Exchange — Nairobi Stock Exchange — Investor Presentation (July 2005)

18 slides from Nairobi Securities Exchange's investor presentation, Jul 27, 2005

  1. Slide 1: NSE – A Vehicle for Endless Wealth Creation

    NSE – A VEHICLE FOR ENDLESS WEALTH CREATION A PRESENTATION TO STANBIC INVESTMENT (EA) CLIENT TRUSTEE TRAINING, 27TH JULY 2005, 11.00 AM, NSE AUDITORIUM By: Mr. Chris Mwebesa Chief Executive NAIROBI STOCK EXCHANGE 1

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS  Market Performance Overview- Reasons for Bullish Market and Market Correction  Challenges for the NSE– New Products  Cross listing - The East African Potential  Path to Full Automation 2

  3. Slide 3: Market Performance Overview - The Bullish Equity Market in 2005

    MARKET PERFORMANCE OVERVIEW- The Bullish Equity Market in 2005 NAIROBI STOCK EXCHANGE 3

  4. Slide 4: Six months market performance overview - market indicators

    Six months market performance overview- The bullish market in 2005 Market Indicators- Jan. to June 2005 Mkt. indicator 31 30 June % Jan. 2005 Change 2005 NSE 20 Share Index 3,094. 3,972.15 28.37 30 Mkt Cap.(Kshs. Bn) 321.23 420.32 30.84 No. of shares 38.81 101.95 162.69 Traded (Mn) Equity Turnover 1

  5. Slide 5: Best stocks by share price appreciation, Jan to July 2005

    Six months market performance overview- The bullish market in 2005 Best stock in terms of share price appreciation between 1st Jan. to 8th July 2005 Company Share Price Kshs High Low Change % Change Kenya Airways 82.00 17.15 64.85 378.13 Mumias Sugar 37.50 8.00 29.50 368.75 E.A. Cables 140.00 50.00

  6. Slide 6: Reasons for the bullish equity market

    Reasons for the bullish Equity Market.  Improved Economic prospects: Agriculture, Tourism, Transport and Telecommunication sectors.  Improved corporate earnings  Introduction of Central Depository System ( CDS) – boosted liquidity  Public awareness on investment at NSE stimulated demand  Stabil

  7. Slide 7: Market Performance - Market Correction

    4,500 500 Market Performance - Market 4,000 450 Correction 400 3,500 350 N SE 20-Share Index 3,000 300 (Ksh. Billion) Market C ap. 250 2,500 200 2,000 150 1,500 100 1,000 50 8 Jul-05 10 Sep-04 N ov-04 Jun-03 Jun-04 May- 05 Sept-03 D ec-02 D ec-03 Feb-05 Mar-03 Mar-04 Month NSE 20 -Share Index Market

  8. Slide 8: Trend: NSE Share Index and market capitalization

    Trend: NSE 20 Share Index & Market capitalization Since Sept 30 2002, •the NSE 20 Share Index has moved from 1043.73 to 3,987.04 on July 22, 2005, a rise of 2, 943.31 points, 282.00% change. •the market capitalization has moved from Ksh. 85.79 billion to Ksh. 433.10 billion on July 15, 2005, posting

  9. Slide 9: Challenges for the NSE - New Products

    CHALLENGES FOR THE NSE - NEW PRODUCTS NAIROBI STOCK EXCHANGE 9

  10. Slide 10: Challenge - Supply: New Listings (MIMS)

    Challenge- Supply How? Through: 1. New Listings New Prospects for Listing include: The Main Investment Market Segment (MIMS)  Equity Commercial Bank;  Uchumi Supermarkets Rights Issue (Ksh. 1.2 billion);  30% of Kenya Electricity Generating Company (KENGEN);  Sarova Hotels 10

  11. Slide 11: Challenge - Supply: New Listings (FISMS)

    Challenge- Supply How? Through: 1. New Listings- Cont. New Prospects for Listing include: The Fixed Income Securities Market Segment (FISMS)  Faulu Kenya Ltd- Listed corporate Bonds of Kshs 500 million  PTA Bank Ltd – Already raised Kshs 800 million from Corporate Bond  Athi River Mining 5 year F

  12. Slide 12: Challenge - New Products: New Markets

    Challenge- New Products How? Through: 2. New Markets - there is a need to prioritise:- 1. Over the Counter (OTC) Market; 2. Commodities Exchange; 3. Real Estate Investment Trusts (REITs); 4. Regional Cross listings 5. Money Market Exchange; 6. Venture Capital Board 12

  13. Slide 13: Cross Listing - The East African Potential

    CROSS LISTING - THE EAST AFRICAN POTENTIAL NAIROBI STOCK EXCHANGE 13

  14. Slide 14: Consequence of a Regional Stock Exchange for the NSE

    Cross listing – Consequence of a Regional Stock Exchange for the NSE Kenya : • 48 listed companies (EA Uganda: Breweries already cross- AD 6 listed companies listed in UG, and Kenya D (including 2 whose Airways cross listed in UG primary listing is and TZ). 5 corporate Kenya). 7 Govt. bonds; 83 An G

  15. Slide 15: Challenges to Cross Listing

    Challenges to Cross Listing  Multiple regulators – Market participants who are subject to multiple regulators are likely to face regulatory uncertainties, complexities, and increased costs both directly in having to comply with multiple regulatory regimes and indirectly in having to pay for the man

  16. Slide 16: Path to Full Automation

    PATH TO FULL AUTOMATION NAIROBI STOCK EXCHANGE 16

  17. Slide 17: Technology Path

    Technology Path  The NSE’s technology path in line with the overall market automation strategy, has four sub projects, namely; 1. Central Depository System – CDS (Done) 2. Automated Trading System - ATS 3. Broker Back and Front Office System - BFO 4. Real time Information Dissemination 17

  18. Slide 18: End

    End NAIROBI STOCK EXCHANGE 18

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