Re­gion’s bourses shift to data vend­ing

The East African - - MARKETS -

East African se­cu­ri­ties ex­changes have shifted to data vend­ing in an at­tempt to shore up dwin­dling rev­enues, re­sult­ing from low trad­ing ac­tiv­ity.

has learnt that the Uganda Se­cu­ri­ties Ex­change has al­ready started charg­ing in­vestors for its mar­ket data re­ports on stocks and bond trad­ing, and the Rwanda Stock Ex­change has an­nounced plans to start im­pos­ing a fee on the same ser­vices.

These moves are part of ef­forts to di­ver­sify rev­enues away from the volatile eq­ui­ties mar­kets, which have suf­fered mas­sive for­eign in­vestor ex­its due to high in­ter­est rates in the US.

The Ugan­dan bourse started im­ple­ment­ing its data vend­ing ser­vices on Jan­uary 1.

Fee on re­ports

The USE, which has been of­fer­ing mar­ket data free for over 20 years, has now im­posed a fee on its daily re­ports and in­for­ma­tion on listed firms and re­quires in­ter­ested par­ties to sub­scribe to the ser­vice.

In Rwanda, RSE chief ex­ec­u­tive Ce­lestin Rwabukumba said the bourse has been of­fer­ing free data ser­vices since in­cep­tion in 2008, but plans are now un­der­way to in­tro­duce a fee for the data.

“We have been do­ing it free as an in­cen­tive to in­vestors, but we plan to get peo­ple to pay for it. We have al­ready signed con­tracts with dif­fer­ent com­pa­nies,” Rwabukumba told

In Tanzania, DSE chief ex­ec­u­tive Moremi Marwa said that the bourse is al­ready sell­ing its mar­ket data. Its key clients in­clude Bloomberg and Thom­son Reuters.

In Kenya, the Nairobi Se­cu­ri­ties Ex­change is charg­ing in­vestors for both daily and his­tor­i­cal mar­ket data, with the over­all cost based on the value of the data, amount re­quired and the ef­fort in­volved in pro­duc­ing it.

In­vestors are also re­quired to pay a fee to get ac­cess to Nse-listed com­pa­nies' re­ports.

Last year, the re­gion's cap­i­tal mar­kets went through a difficult pe­riod, with share prices fall­ing as for­eign in­vestors sold off their shares.

Global re­search firm Fo­cusec­o­nomics has warned that emerg­ing and fron­tier mar­kets are at risk of height­ened volatil­ity in their fi­nan­cial and eq­uity mar­kets, as well as size­able cur­rency de­pre­ci­a­tion this year.

This is largely due to higher yields in the US, in­creas­ing oil prices, and high ex­po­sure to for­eign debt.

The firm noted that in­creased oil prices are put­ting pres­sure on some oil-im­port­ing coun­tries, wors­en­ing their cur­rent ac­count po­si­tions, while the higher yields in the US are likely to cause for­eign in­vestors to sell off their stocks in African mar­kets.

Pic­ture: File

The re­gion’s stock ex­changes will now be sell­ing mar­ket data re­ports on stocks and bond trad­ing.

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