@emlyn and scubidu,

My assessment criteria for any index would include suitability and investability. I guess what scubidu is alluding to the second criteria.

In my view, the FTSE indices are kinda reliable than both the AIG and NSE 20 based on their criteria for including stocks in their index. In addition, its much easier to ascertain tracking risk from the FTSE indices than the two indices.

@ scubidu, have the AIG index ever adjusted their index in light of last year's IPOs and listings by introduction.

Regards

@scooby

Many market participants (investors, brokers etc) would do this, which would create downward pressure on the price of the stock in Uganda where it trades for kesh100 and upward pressure on the price of the stock in Kenya, where it trades for kesh 98. Eventually the two prices must come together so that there is but a single price for the stock. Recall the law of one price?

Due to information assymetry in uganda, amongst other reasons such as slow trading process, political interference etc illiquidity is bound to be charachteristic of that market.

The Nse is not as developed as that in sa of the UK but iliquidity in the bond market stems from the CMA and CBK probably for monetary policy conditions?

@emlyn. the arbitrage is not short lived because of the illiquidity and not everyone is equal on the information curve. your scenario doesn't really play out becoz hardly any1 know the bid/ask spreads. The illiquidity in the bond mart is caused by CBK actions. is it easier to track risk if CBK actions determine the direction of ur bond portfolio?

@scooby. Pinebridge haven't included the recent IPOs in their index. I believe the sale/lease backs should not be traded on the NSE (or recorded seperately on the trading platform) or at least a separate OTC repo market should be created.

the question is where's market and how do you enhance price discovery in the Kenyan bond mart? That's why some bankers are advocating for an OTC bond mart becoz they believe using platforms like reuters and bloomberg will enhance price discovery.

It sounds like we are in an industry that we know not.Hii mambo yooootee inayo-ongewa hapa sijaelewa hata nusu percent. One thing I know is, with all this knowledge, the brokers and akina Funds Managers also get burned tena worse than akina sisi. when we get burned no body is spared even the learned are fried...then what is the fun of lerning all these jergons and charts?? Sometimes i think this is just a trial an error industry and a lucky share choice at the right time accept those with 25 years investment duration/plan. Again it's better when u r knowlegeable than when you incvest like me...follow akina BIGCHAIR and the rest blindly.

@mzeekijana. Don't follow anyone. Take advice from everyone, but make your decision based on what you uncover. Warren buffet isn't interested in economics but makes decisions based on what he understands (but you have to decide what level of knowledge you require to make a decision... the rest is trial and error).