NSE Day Trading: The Nairobi Securities Exchange has received regulatory approval to initiate day trading in Kenya. Following the approval, the NSE will kick off day trading on November 22, 2021.
“With day trading, a trader will be purchasing and selling a security within a single day or trading session or multiple times over the course of the day,” the NSE said in a statement.
The NSE Board also 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% compared to normal trades which are levied at 0.12% .This benefit will be enjoyed by the investor directly through their trading accounts.
“Day trading is a welcome move for local investors who have previously lobbied for the activation of the intraday 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,” said Geoffrey Odundo, the chief executive officer at the NSE.
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The introduction of day trading is part of NSE’s strategic objective to enhance liquidity. According to NSE chairman Kiprono Kittony, day trading 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.
The NSE 25 Share Index hit a 12 month high of 4,075 points in August this year, recording a record market capitalization of Sh. 2.9 trillion. “The increasing market activity is an indicator that the companies listed at the NSE are growing steadily and a reflection of the positive future outlook across the various sectors in the economy,” said Odundo.