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The East African : Apr 19th 2015
52 APRIL 18-24,2015 BUSINESS, MARKETS AND FINANCIAL ANALYSIS THE MARKET WHISPERER EQUITY MARKETS (WEEKLY CHANGE IN BENCHMARK INDEX) NSE 20 Share Index Kenya 5,093.00 -0.60% (CUMULATIVE MOVEMENT) DSE All Share Index Tanzania 2,720.16 1.00% USE All Share Index Uganda 2,057.69 2.00% RSE All Share Index Rwanda - 137.14 0.01% JSE All Share Index South Africa 53,734.04 0.67% NGSE All Share Index Nigeria 35,005.42 0.22% pool of international funding as the region’s capital market regulators seek opportunities for dual listing on the London Stock Exchange (LSE). The move is expected to attract foreign investment to the region and give regional investors a chance to invest across borders by raising money from global financial capitals, with London being the largest global pool of investment capital. A high-profile dual list- ing conference organised by the LSE was held in Kenya’s capital Nairobi last week to lay the ground for the proposed integration of local markets into the global financial map. The Capital Markets Authority, Nairobi Securities Exchange, Stephenson Harwood and Horizon Africa Capital were among the convenors. “The option for dual list- ing is already available to all markets in East Africa and there is one Tanzanian company that is dual listed in London and one dual Paul Muthaura, acting chief executive of the CMA, said the option for dual listing is available for East African markets. Picture: File listed Kenyan company,” Paul Muthaura, acting chief executive of the CMA, told The EastAfrican. A dual-listing involves two companies listed in different countries agreeing to combine their operations and cash flows. They pay similar dividends to their shareholders while retaining separate shareholder registries and identities. It is estimated that a fifth of the 600 interna- tional companies listed in London are African or Africa-focused. They have a combined market capitalisation of $396 billion Dual listing in London and in Nairobi, Kampala, Dar es Salaam, Kigali and Bujumbura would allow companies from the region to raise equity capital locally and abroad through a single offer. Swala Energy Ltd of Tanzania is in the initial stages of planning a listing on the AIM Market of the LSE. The company has en- gaged Stifel Nicolaus Europe Ltd, formerly Oriel Securities Ltd, to act as its nominated advisor and broker for the transaction. “The dual listing on Lon- don’s larger and more liquid stock exchange will allow us to gain access to larger capital markets ahead of our 2015 drilling campaign,” said Dr David Mes- Regional companies seek to dual-list in London L isted companies in East Africa are set to access a tres Ridge, the company’s chief executive. A Kenya oil firm, Atlas Development & Support Services, formerly Africa Oilfields Logistics Company, which is listed on the Growth Enterprise Market Segment of the NSE, has dual listed on the LSE. “A dual listing allows a Kenyan company to attract the world’s largest investors and gain international visibility without compromising its ability to tap domestic capital and develop a robust domestic shareholder base,” said Mr Muthaura. It is estimated that Afri- can companies have raised in excess of $12 billion in new and further equity capital across the Alternative Investment Market and the Main Market on the LSE since 2008. About 120 companies having major operations and assets in Africa are on LSE markets; three operate in Kenya. Geoffrey Odundo, chief executive of the NSE, said the bourse is keen to collaborate with the LSE and other exchanges to enhance dual listings. DHL names Mba≥a≥a and Konza as ‘boom towns’ THE WORLD’S leading logistics company, DHL, has placed Uganda’s Mbarara town and Kenya’s Konza City among five unexpected “boom towns” and cities in Africa with high growth potential. The two are among five outliers whose growth would be bolstered by agriculture and technology. The others are Bobo-Dioulasso city in Burkina Faso, Ebène, a technology hub in Mauritius, and Farafenni town in Gambia. According to the new DHL re- port, Mbarara’s location at the heart of the dairy-farming district in western Uganda coupled with favourable climate and abundant land availability, is attracting investors. The town is situated 280km from Uganda’s capital Kampala. In 2013, Nile Breweries Ltd (NBL) expanded its operations in Uganda with the establishment of a new brewery in Mbarara with an initial capacity of 650,000 hectolitres of beer per annum, expandable to 1.8 million hectolitres. “Proximity to important export markets in eastern Democratic Republic of Congo was an added factor in choosing this location,” according to NBL. Alpha Dairy Products (U) Ltd and Shumuk Dairy Products (U) Ltd are other industries already in the town. Konza Techno City, having just finished its infrastructure phase, targets the four economic sectors of education, life sciences, telecommunications and business process outsourcing. It is expected to significantly stimulate technology spending, investment and growth in Kenya, according to John Tanui, Konza Technopolis Development Authority chief executive officer. The planned city is located 80 kilometres south of Nairobi. Published at Nation Centre, Kimathi Street, and Printed at Mombasa Road, Nairobi by Nation Media Group, Box 49010, GPO Nairobi, 00100. Registered at the GPO as a newspaper. Nairobi Office, Tel: 3288000, 211448, 337710, Fax 214531, 213936. Dar es Salaam Office. Tel: 2119657/8. Kampala Office, Tel: 232771, 232772. Fax 232781 Download free QR Readers from the web and scan this QR (Quick Response) code with your smart phone for pictures, videos and more stories Tanzanian shilling falls fa≥the≥ MONEY TRADERS expect the Tanzanian shilling to lose further ground this week after tumbling to an all-time low against the dollar last week. The shilling has encountered turbulence for most of the year and could slide below 2,000 units to the dollar unless the central bank intervenes. The shilling started the day at 1,890 selling and 1,906, but slid to 1,900 and 1,925, respectively, at close. Some commercial banks quoted the dollar as high as 1,940. “With increased demand ex- pected next week, the shilling is poised to remain on a weak footing if no sizeable US dollars inflows enter the market,” a dealer at one of the banks told The EastAfrican on condition of anonymity. He said demand for dollars would come from oil companies, manufacturers and multinational companies paying dividends. He said the shilling would remain depressed until mid this year when foreign exchange earnings from tourism and agricultural start flowing into the economy.
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