Tuesday, August 21, 2007

Renaissance Capital gets seat, but...

As blogged awhile back, this is a good move because it will help bring in more foreign investors into the bourse which will hopefully be +ve in terms of getting:
  1. Greater transparency in reporting of company information
  2. Some serious compe for some of the duds currently in the bourse ghosting as brokers...

Its however disappointing that the incumbents remain scared of the local competition. RenCap will take a while to get going and will in any case probably be targeting foreign investors and institutions.

As mentioned by others, having Old Mutual would definitely have meant that a market-mover was also able to recruit stock clients.

I was however, looking forward to having NIC Capital as a broker. NIC the bank has a history of innovating and despite not having many branches, they probably have a wider distribution than any of the brokers/investment banks. And really it won't take much to be better than D&B (who can't even protect their website-mara its Universal Corporation mara its myspace) never mind all the to-ing and fro-ing for orders to be executed.

Anyway, come next year when NSE demutualises, we'll hopefully faster entry into the exchange. On that pt, hopefully you have been acquainting yourselves with NSE annual reports-they made 3 times as much from transactions compared to 2005, but a Ksh100mn profit between 18 brokers isn't a lot . Given what the three were willing to pay, I don't know where you make the money from.

3 comments:

John Maina said...

Some of the current brokers are underpermforming and to an extent playing by their own rule rather than CMA. they are also all in one i.e. brokers, advisers name it all.

From what many have expressed more so those in the diaspora its best more brokers are authorised to compete with the current one. So that those not upto the job can be driven out of the market or to improve.

coldtusker said...

RenCap should shake up the local market as well!!!

A pity OMAM did not get the seat... they should move their business to RenCap to spite the brokers who did not want OMAM as a broker!

Mo said...

Hallo Kenyan Investors,

This surely is a great way to know whats on the ground in regard to home investment, since it aims at looking at the bigger picture on bettering our home economies.

I got a question for you. Since Rencap's appearance on the market, what is your take on their reputation thus far? Have they stirred the investment field making it better and bigger?

Looking forward to hearing from you
Maureen