The NSE & CMA are moribund organizations overly focused on the short-term.

We need fully fledged electronic trading then we can encourage listed firms to split shares so they are traded in the KShs 10-20 range...

IMHO, the 10-20 range is the sweetspot for liquidity. Folks make meaningful trades & the liquidity just jumps!

BTW, the commission structure is RIDICULOUS!!! We need flat rates!!!

The enhanced liquidity will encourage new listings & additional investors.

Look at KQ which was sorta liquid in the 20s but a 3:1 split can bring it back into the 'liquid' range.

Or BAT flitting with 200/- with only a few shares traded. A 10:1 split would be sweet!

EABL has been on the forefront of splits. And needs another 10:1 split to enable us buy them at 15/-. Imagine the liquidity here!

The most liquid counters are Safaricom (tho IMHO, it needs to consolidate the shares), Equity Bank, Mumias... all these trade between 0-20 range.

i definately agree.. a lower price range for stocks would bring a swarm of buyers and sellers to the market

this is so evident in the fact that one needs more than 10k just to get into BAT(20k), KPLC(16k), STANCHART(18k), BOC(16k), PORTLAND(9k), EABL(16k), BAMBURI(17k) etc.. and only to meet the minimum requirement of 100 shares and this is just not attainable by many kenyans, leaving foreigners to rule our market...

but i think this will be up to the companies not the CMA or the NSE...

i forgot to add something... as much as splitting will be good.. wont splitting shares bring alot if small holders to the NSE and thus encouraging massive price volatility in the market..

safcom as best example.. they are now dying to consolidate the shares

@Vitu......please eduate me a little. How do you quote on wazua as u have done on my post above here....

The beauty of "penny stocks" is that you can trade on small margins (but, of course, at NSE you have to contend with large commissions as well!!).

The "problem" with SCOM is not the "low price", nor is it the large number of shares!

The problem is the large number of SHAREHOLDERS - around 800,000 individuals - and most of them bought with expensive bank loans.

I think the much touted consolidation will be a futile exercise.

This reminds me so much of KQ in the 90s. Some fellows even went to court to try and force the GoK to buy back the shares! Remember; it was the largest IPO of the 90s

But SCOM is in quite a different league. 40b shares and 800k holders are not few! The mop up is going to take a while and no wonder the directors have been going on investor roadshows in world capitals.

The share price of SCOM is also a PR concern for the company

@Wa_ithaka; Yes; this is a greater factor than the price issue. Then add the many fingers burnt by SCOM and the complexity gets compounded

Wacha upuzi (said with love)... Read the original post... I do indicate the NSE & brokers need to clean up their act...

Now... the rest is pure psychology & human behavior. Is it rational or logical to pay more if I cut the slice into 2 pieces? NO... lakini folks do it all the time!

Add the flat brokerage rates I propose. That incentivizes trading especially larger trades/volumes...

At 'lower' prices the pool of market participants will increase. Look at Safaricom vs EABL. Part availability of funds. Part human nature.

vvs- you are contradicting yourself, but hey. its friday. Safcom' liquidity also played a part in sinking the NSE

@vitu. Is it confirmed that Ngenye is kaput?