FINANCE EA DAILY BUSINESS NEW SUMMARY

Nearly 97 percent of equities accounts used for trading at the Nairobi Securities Exchange (NSE)  have been dormant in the past two years, revealing the apathy among retail investors who entered the market during the 2000s IPO boom.

Only 61,000 of the 2.03 million share accounts at the Central Depository and Settlement Corporation (CDSC) have participated in trading over the two years, representing a three percent share.

Analysts said the reduced participation of retail investors is largely a reflection of the high-level speculation that dominates their investment decisions.

They remained muted after Safaricom IPO of 2008, which brought nearly one million new investors to market after the telecoms operators failed a repeat of the KenGen debut experience in 2006 when the energy firm’s shares doubled their offer value….Business Daily

Cash circulating outside the banking system hit an all-time high of Sh253.4 billion in December last year as Kenyans went into the festive period.

Data published by the Central Bank of Kenya (CBK) shows that the metric which is a blunt measure of the economic times of a country grew by Sh14.8 billion (6.2 percent) from Sh238.6 billion.

The rising value of cash outside the banking system is an indicator of economic recovery as Kenyans increased their spending for December and reopening of schools for the third term.

Improved consumption brought by increased confidence and income as a result of new hirings and removal of containment measures aimed at combating the pandemic have lifted the economy recover thereby increasing peoples’ disposable income……Business Daily

 

While many of us may be familiar with a budget because we make plans on how to use our own money, it may be difficult to understand the government budget and the processes involved. 

What is a supplementary budget and why do we need one?……..NATION MEDIA

Last year, Wall Street was rattled by a market craze as retail investors banded together to drive up meme stocks in what came to be seen as a geeks’ revolution against hedge fund billionaires. 

Overnight, GameStop, a retail chain store selling computer games that had been written off as a dying breed, came back to life. 

Between January 1 and 28, 2021, GameStop’s share price soared 2,700 per cent from Sh1,949 to Sh54,579 in a frenzy driven largely by retail investors. 

Fans of GameStop and online traders rallied on messaging boards and trading apps such as Robinhood to drive up the price and at some point, the app was forced to restrict purchases to steady the markets……Standardmedia

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