This archive report was first published on 27 October 2021.
Nairobi Securities Exchange (NSE) has received approval from the Capital Markets Authority (CMA) to initiate day trading, starting November 22, as part of its strategy to enhance market liquidity.
According to the NSE, its board has approved 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 discount will be enjoyed by investors directly through their trading accounts, thanks to the NSE's efforts to enhance the requisite infrastructure.
Day trading allows investors to purchase and sell a security within a single day or multiple times over the course of the day.
Geoffrey Odunda, the Chief Executive Officer at NSE, noted that day trading is a welcome move for local investors seeking 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, expressed confidence that day trading will allow investors to trade on one position, two or three times a day, significantly increasing turnovers and attracting more investors to the bourse.
“This will further entrench the NSE as an innovative and transformational Exchange in the region,” he said.
The move is part of the NSE's strategy to firm up its survival following the drastic impact of the COVID-19 pandemic.
Published on October 27, 2021.
