Happened this morning??........Sababu...??

Guka wa bijuti...

I believe the rush to transfer accounts to Equity from the stockbrokers AFTER J Mwangi told the shareholders to support Equity. This would overload the CDSC since there are THOUSANDS of accounts. Plus Equity opens 100s of new accounts daily.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

I think the brokers are agitating against Equity. Brokers/NSE has board seats at CDSC as well. Plus Equity told brokers to shove off when they wanted huge sums for their firms.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

ColdTusker claims Dyer & Blair were responsible...OR..coming so close after a Ksh. 250M price tag for a brokerage license..and James Mwangi openly talking off any ideas of such a purchase prior to that at the AGM...and brokerage firms complaining of banks encrouching on their 'turf.'..check for non-competitive practices...if it's that...Equity Bank is used to it...kazi iendelee

Equity bank as a CDA is currently controlling one-third (33%) of all share transactions in the NSE. The orders are placed by their customers then Equity forwards them to either of 8 stock brokers for implementation. Once transacted,equity pockets 70% of commission while brocker pockets 30%. The effect is that Equity is squeezing the brokers at their own field,getting the lions share of commissions without having to invest in a brokerage licence(why buy a licence for Ksh 251 M when you can be a broker without being a stock broker ie rent one). The dominance of Equity in stocks is fast growing and the big boys must be scared. What would prevent them from offering the broker say 20% only (and retain 80% or more of commission) once they control 50-60% of the NSE transactions.

To avoid the intimidation by the NSE big boys,they may have to buy a broker but this would surely kill all the small brokerage outfits. If I had a brokerage firm,I would be the first to sell or else be forced to close shop once Equity enters the field.



Happy hunting


Stocksmaster-For well researched market analysis

@Stocksmaster,

Good information........This though,still does not explain the suspension.......


Guka wa bijuti...

They need to officially address the matter. Perhaps Equity will do so since their reputation at stake.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

@ Kula Raha. You nailed it!

Pay up or Ship out!


The opportunities lie in the challenge. Go for the challenge.

I thought a CDA can only transact through one broker. If I'm right,why is Equity doing it with 8?

$$$

Stockbrokers are jealous of EB. EB provides safety that most brokers do not. Lakini EB shud tell us why the 'suspension'.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB