Wednesday, October 18, 2006

Automated Trading on the Nairobi Stock Exchange

Is it true that the new trading system only deals in lots of 100 shares.Hence, trading of shares in lots like 235,105 is difficult and expensive.
But in multiples of 100 easy.e.g. 2000,5000....etc

Anybody out there who can tell me more?

9 comments:

gathinga said...

true. i had 142 bbk shares. whn i gave a sale order, only 100 were sold., after almost 6 weeks, the broker told me he cantr sell!!

Riba Capital said...

So damn true.

I sold two separate odd lots and in both cases they sold in hundreds. very wierd. I wonder what am suppossed to do with the remaining 12 shares in kengen.

pesa tu said...

@gathinga: I know how it feels.Apparently, brokers warned guys with large A/c's to 'clean them up' before ATS began

@Riba:Same here , i also have a similar problem.

bankelele said...

Am stuck with 2 shares of EABL!

mushenzi said...

LoL...ati stuck 2 EABL shares...NSE needs to sort that out or else we will have a situation where everyone has <10 shares in every counter.

coldtusker said...

The CMA & NSE do not allow firms to do "housekeeping" which would solve this problem!

EABL would offer all shareholders with less than 100 shares a "market price" and buy them back thus eliminating (thus the term housekeeping) multiple accounts.

EABL benefits by reducing the costs of the register (maintenance, Annual Reports, Dividend cheques) while investors can be out entirely.

Instead the CMA & NSE are only interested in their own profits without considering the needs of the Investors & Listed Firms...

No COMPETITION...

xtra-cash said...

Does that mean no trades in odd lots whatsoever? The NSE should ask the vendor to tweak the new system to the local conditions. This is not exactly Malaysia, we're yet to get there.

gathinga said...

my broker has now sold the balance bbk shares. i guess one can still trade in odd lots

pesa tu said...

@Bankelele:U could assign the 2 shares to your brokers' nominee accounts to avoid getting a dividend cheque of Ksh 10.35 or something

@ColdTusker: Remember when KQ was denied permission to carry out a share buyback?

@xtra-cash: Odd lots are allowed but on a different board or system(unsure).either way they are difficult to trade.

@Gathinga: What was the Commission? I hear it's higher than usual for such trades.