Battered brokers offload stake in Nairobi bourse shareholding
Dealers at the Nairobi Securities Exchange. A review of NSE Plc’s financial performance shows that the firm’s net profit dropped to $800,000 in 2019 from $3.2 million in 2014. PHOTO | FILE | NMG
The self-listed Nairobi Securities Exchange (NSE) is battling a crisis of confidence over the continuous decline in stock prices, which has seen close to a half of the stockbrokerage firms that held shares in the Kenyan bourse sell their stake over falling returns and uncertainties over the market’s recovery prospects.
The EastAfrican has learnt that out of the 17 brokerage firms that controlled close to 56 per cent of the exchange after the initial public offering six years ago (July 2014), eight firms have sold off their shareholding while others such as NIC Securities Ltd and Dyer &Blair Investment Bank have reduced their stakes.
