NSE annual general meeting kicks off

By Jackson Okoth

The Nairobi Stock Exchange (NSE) is on Thursday expected to hold its annual general meeting (AGM) as the effects of the weakening shilling, high inflation, and rising interest rates drive activity at the bourse southwards.

Shareholders at the NSE will transact all the normal businesses associated with any AGM, including approval of accounts and appointment of auditors.

However, matters touching on demutualisation process will not take place.

This is due to a matter pending the court. With this item missing from the agenda, the AGM is expected to dwell on all other routine matters and will thus take a shorter period to wind up its sittings.

In attendance will be the stockbrokers and investment banks that own trading seats at the exchange and are also its owners.

The AGM is taking place when the NSE is preparing for demutualisation, a process that will see the bourse get a new board of directors, separation of ownership from trading rights and a new shareholding structure that will give stockbrokers 84 per cent, Government eight per cent and another eight per cent to non-stockbrokers.

The AGM comes as a row brews over a move by some fund managers to deal directly with their affiliate stockbrokerage firms.

At present, there is a huge presence of foreign investors especially on the bank counters, including Kenya Commercial Bank (KCB).

"We are still in a primary bear market with secondary up and down movements. Retailers are still holding on to cash leading to an outflow of funds from the market," said George Bodo, Equity Analyst, ApexAfrica Capital Limited.