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CMA to pay whistleblowers up to Sh5m



The reward scheme is part of wider efforts by the CMA to tighten the noose on market cheats. FILE PHOTO | NMG


The Capital Markets Authority (CMA) will reward whistle-blowers who report market malpractices with up to Sh5 million if proposals contained in the CMA Amendment Bill 2018 are passed by Parliament.

The CMA launched a whistle-blower portal in July 2016, hoping that the public would use it to report bad apples in the capital markets.

The regulator last year admitted that it needed to put in a reward scheme after going for a year without getting tips on the portal. CMA officers are, however, not eligible for this reward.

The rewards apply to those reporting ill-gotten gains where those harmed are not specifically identifiable—recoveries of which are usually put into the investor compensation fund.

“The reward payable…shall be three per cent of the amount recovered subject to a maximum of five million shillings, and shall be paid before the recovered sums of money are transferred to the fund,” reads the Bill in part.

The amendment Bill was tabled in Parliament in July, and is awaiting the second and third readings before being signed into law.

Reports received will be forwarded to the Capital Markets Fraud Investigation Unit for an in-depth probe.

This reward scheme is part of wider efforts by the CMA to tighten the noose on market cheats, with the amendment Bill also refining the rules on front running, bringing to the fore offences of insider trading based on privileged or prior information about companies.

Although insider trading is already an offence in Kenya, there have been few reported convictions over the same in the past, which has risked the reputation of the stock market among investors.

Last month the CMA flexed its muscle in summoning independent trader and analyst Aly-Khan Satchu over suspicious trades on the KenolKobil stock days prior to the announcement of a takeover offer by French firm Rubis Energie.


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Stock markets

Bank of Kigali shares start trading on Nairobi bourse




Bank of Kigali. File Photo | NMG

Shares of Rwanda’s largest lender by assets, Bank of Kigali (BK) Group Plc, started trading on the Nairobi Securities Exchange (NSE) on Friday,

It becomes the second company to cross-list on the Nairobi bourse after Uganda’s Umeme in December 2012.

The BK Group’s shares, whose primary listing is Rwanda Stock Exchange, started trading at a reserve price of Sh30.

The highest bid price for the BK Group shares by 11.30am was Sh32 per unit, a trader said.

The listing followed a recent successful rights issue at the ratio of three shares for every one held, a cash call that raised Sh7 billion.

Growth strategy

The bulk of fresh cash will go into supporting Bank of Kigali’s growth strategy, which is heavy on penetrating the largely untapped retail banking segment.

“BK Group was raising capital to meet its gross needs and requirements, and we took this opportunity to cross-list on the Nairobi Securities Exchange because we wanted not only to offer more liquidity to our existing shareholders, but also exposure to the Rwandan market for potential new shareholders and we have managed to do that with this transaction,” chief executive Diane Karusisi said.

“We want to deploy this capital very quickly and efficiently in the Rwandan market and we are committed to deliver the expected results to our investors.”

The company said last Friday that existing shareholders exercised 103.58 million rights out of the 222.2 million units available offered, with the balance of 118.64 million untaken rights — known as rump shares — sold mainly to qualified institutional investors (QII).

Some 146.15 million shares have been allocated on the Rwanda Stock Exchange (RSE) with the balance of 76.07 million going to the Nairobi bourse.

‘Landmark’ investment

Head of investment banking in Africa at Renaissance Capital David Dalhuisen termed the cross-listing as a “landmark”, giving investors on the Nairobi bourse to share in returns from Rwanda’s banking industry.

“This transaction is particularly exciting as it is the first time that an East African company has combined a cross-listing with a capital raise, showing the potential and advantages of tapping a new market for that purpose,” Mr Dalhuisen said.

Bank of Kigali Group Plc is the holding company of Rwanda’s largest commercial lender Bank of Kigali Plc, BK Insurance, stock brokerage BK Capital and technology services business BK TecHouse.

Bank of Kigali Group’s largest shareholders are the Government of Rwanda (29.5 per cent), Rwanda Social Security Board (25.1 per cent) and international institutional investors (14 per cent).

“It was very natural that Nairobi will be our first market for international listing. The liquidity at the Nairobi exchange is very impressive (and) the custodial services here satisfy the investors who want that comfort,” BK Group chair March Holtzman said.

“We have been so warmly received by the authorities and the Nairobi Securities Exchange. Today is real a very significant step in terms of regional economic integration.”

– BusinessDaily

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Stock markets

EGX ends Thursday on mixed note, market cap, loses LE1.5B




FILE – Chairman of the Egyptian Exchange (EGX) Mohamed Farid


CAIRO – 29 November 2018: The Egyptian Exchange (EGX) ended Thursday’s session on mixed performance amid Arab selling, and market capitalization lost LE 1.53 billion.

The benchmark EGX30 rose 0.08 percent, or 10.01 points, to close at 13,319.5 points.

The equally weighted index EGX50 decreased 0.63 percent, or 13.86 points, to reach 2,185.19 points.

The small and mid-cap index EGX70 inched down 0.10 percent, or 0.66 points, reaching 681.59 points, and the broader index EGX100 went down 0.10 percent, or 1.79 points, to close at 1,706.79 points.

Market capitalization lost LE 1.53 billion, recording LE 750.7 billion, compared to LE 752.23 billion in Wednesday’s session.

The trading volume reached 258.41 million shares, traded through 25,186 transactions, with a turnover of LE 1.75 billion.

Arab investors were net sellers at LE 225.39 million, while Egyptian and foreign investors were net buyers at LE 46.27 and LE 179.12 million, respectively.

Egyptian and Arab individuals were net buyers at LE 26.48 million, and LE 8.05 million, respectively, while foreign individuals were net sellers at LE 113,459.

Arab organizations sold at LE 233.44 million, while Egyptian and foreign organizations bought at LE 19.79 million, and LE 179.24 million, respectively.

Torah Cement, Natural Gas & Mining Project (Egypt Gas), and Misr Cement (Qena) were top gainers of the session by 9.09 percent, 5.18 percent and 4.36 percent, respectively.

Meanwhile, B Investment Holding, Misr Fertilizers Production Company – Mopco, and Sharm Dreams Co. for Tourism Investmentwere top losers of the session by 9.13 percent, 4.85 percent, and 4.22 percent, respectively.

EGX ended Wednesday’s session in green, as EGX 30 rose 0.72 percent, EGX50 hiked 0.53 percent, EGX70 inched up 0.06 percent, and EGX100 went up 0.25 percent.


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Stock markets

Mobil, Seplat , others drag down market value




Oil Firms on Tuesday top the losers’ table at the the Nigerian Stock Exchange (NSE), the News Agency  of Nigeria (NAN) reports. The oil firms are Seplat, Mobil oil and Forte Oil. Seplat led the laggards’ table with a loss of N62.70 to close at N590 per share while Mobil Oil trailed with a loss of N5 to close at N160.

Forte Oil dropped N1.90 to close at N17.30, while PZ Cussons declined by N1.15 to close at N10.55 per share. Dangote Cement was  also down by N2 to close at N193 per share. NAN reports  that huge losses posted by some blue chips took a toll on its overall performance with market capitalisation slipping further by N149 billion. The capitalisation shed N149 billion or 1.29 per cent to close at N11.380 trillion against N11.529 trillion posted on Monday.

Also, the All-Share Index which opened at 31,579.72 lost 406.01 points or 1.29 per cent to close at 31,173.71. Analysts attributed the persistent losses on the stock exchange to political uncertainties ahead of 2019 elections and end of the month activities. On the other hand, Beta Glass recorded the highest gain to lead the gainers’ table, gaining N6.20 to close at N68.30 per share.

Nestle followed with a gain of N5 to close at N1,485, while CAP appreciated by N3 to close at N34.95 per share. Cadbury gained 55k to close at N9.75, while UACN gained 20k to close at N10.10 per share. In spite of the drop in the indices, the volume of shares transacted increased by 73.77 per cent, while the value grew by 41.75 per cent.

Consequently, 182.23 million shares valued at N2.75 billion were traded by investors in 3,121 deals. This was in contrast with 104.87 million shares worth N1.94 billion exchanged in 2,911 deals on Monday. Cement Company of Northern Nigeria was the most active stock, exchanging 37.94 million shares worth N682.87 million.

Access Bank followed with an account of 29.29 million shares valued at N212.25 million, Transcorp sold 22.39 million shares valued at N25.87 million.

United Bank for Africa sold a total of 12.47 million shares worth N93.91 million, while FBN Holdings exchanged 12.06 million shares valued at N88.21 million. (NAN)

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