NSE day trading to start on November 22

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The Capital Markets Authority (CMA) has approved the daily trading of stocks on the Nairobi Securities Exchange starting November 22, 2021.

Day trading allows investors to close out on multiple trades in a single day including the buying and selling of shares in one session.

“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 intra-day price movements and increase their profit margins. We are confident of a bullish market performance going forward,” NSE Chief Executive Officer Geoffrey Odundo said.

The NSE is exploring avenues of profit making offered by day trading to bring investors into the segment.

“Day trading will allow investors to trade one position, two or three times per day. This will increase our turnovers and attract more investors to the bourse, further entrenching the NSE as an innovative and transformational exchange in the region,” added NSE Chairperson Kiprono Kittony.

The Nairobi bourse is already offering incentives of 0.114 percent to investors to boost participation, compared to normal trades which are levied at 0.12 percent.

The NSE has been on a drive to innovate new segments to boost market activity having recently introduced covered short selling and the unquoted securities platform (USP).

It is an achievement for NSE in the technological investment after it commissioned a new trading  system in October 2919 that enabled separation of the trading and post trading activities.

The NSE was initially set to unveil the mode of trading on November 1, 2021 with the roll out being termed as crucial in enhancing market liquidity.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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