NSE to start day trading after regulatory nod
Investors at the Nairobi Securities Exchange (NSE) can buy and sell shares within hours on the same day following an approval by the regulator.
In a statement the NSE said the roll out of day trading will go live on November 22, as part of its strategy to attract local investors also called day traders.
“To complement this milestone, the NSE board approved an incentive structure whereby investors who participate in day trades will receive a discount on the second leg of the transaction which will be levied at 0.114 per cent compared to normal trades which are levied at 0.12 per cent,” NSE said in a press statement.
The move could also create more jobs for the youth who will make trades and realise gains the same day.
This benefit will be enjoyed by the investor directly through trading accounts. The NSE has since championed the requisite infrastructure enhancements to ensure that this is achieved.
Intra-day trading signal
This effectively enables the introduction of new products which will revolutionise the capital markets and strengthen NSE.
“Day trading is a welcome move for local investors who have previously lobbied for the activation of the intra-day trading, as they seek to take advantage of intraday price movements and increase their profit margins.
We are confident of a bullish market performance going forward.” noted Geoffrey Odundo the chief executive, NSE.
NSE chair Kiprono Kittony said move will allow investors to trade on one position, two or three times per 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.