NAIROBI, Kenya, October 27 – Nairobi Securities Exchange (NSE) has received approval from the Capital Markets Authority (CMA) to initiate day trading starting November 22 as part of the bourse’s strategy to enhance market liquidity.
In a statement, NSE said its board had subsequently approved the provision of a discount on the second leg of the transaction which will be levied at 0.114 percent compared to normal trades which are levied at 0.12 percent.
“This benefit will be enjoyed by the investor directly through their trading accounts. The NSE has since championed the requisite infrastructure enhancements to ensure that this is achieved,” NSE said.
Under day trading, investors will be able to purchase and sell a security within a single day or trading session or multiple times over the course of the day.
Geoffrey Odunda, the Chief Executive Officer at NSE noted that the day trading is a welcome move for local investors who seek to take advantage of intraday price movements and increase their profit margins.
“We are confident of a bullish market performance going forward,” he said.
Kiprono Kittony, the NSE chairman on his part exuded confidence that the day trading will allow investors to trade on one position, two or three times a day.
“This will significantly increase our turnovers and attract more investors to the bourse, further entrenching the NSE as an innovative and transformational Exchange in the region,” he said.
The bourse said the move is part of its strategy to firm up its survival following the drastic impact of the COVID-19 pandemic.
“The increasing market activity is an indicator that the companies listed at the Exchange are growing steadily and a reflection of the positive future outlook across the various sectors in the economy,” it noted.
