- integrity in transactions
- dynamism in reacting and adapting to changing technology
- customer service
- liquid bourse
- strong institutions either controlling or regulating the bourse
- no conflicts of interest
- no political-business affliations
- a decent economic thermometer...
- leading to strong brokers, investment banks
- informed investors
- and a viable saving and investment vehicle
But wapi? We seem to be stuck in a timewarp where we go forward two steps and slowly go back to step one again. Strong measures such as those on disclosure, capitalisation and ownership are only adapted under extreme duress.
We motored between 2002 and 6, but within that period, managed to sow some destructive seeds that we've been harvesting ever since.
Its notable that every time we've had a dip, one or two brokers have said sayonara. FT went out after the Feb '07 dip, Nyaga survived but hobbled throughout 2007 by Mumias' 2nd IPO but succumbed when money ran out after the clashes in early 2008. 2007 also accounted for Solid Investment.
The 2008 bear has accounted for Discount, Crossfields and possibly Suntra. I believe this is the tip of the iceberg. If we went to 2,000, I think we would probably bring Reliable, Sterling, AIB, Ngenye into the net.
Most of these have one or two of the following in common; malpractices, leveraged business model, or operational risks galore. And unlike in some markets where firms react to worries about their "going concern" status by opening their accounts, at the NSE all you hear is typical "deny deny everything".
We need to sweep away the deadwood and hopefully come out of the otherside with strongly anchored brokers either via strong shareholding and governance structures or by being absorbed banks...