Kenyan bourse to launch ‘day trades’ to boost trading

stock market
stock market

Nairobi Securities Exchange (NSE) will on November 22 launch day trading, a practice of buying and selling a security within a single day or trading session, in a bid to improve liquidity at the market.

The NSE said in a statement on Tuesday that the launch is part of its strategy to boost trading after the COVID-19 disruption.

The planned launch is a culmination of investment in technology by the bourse, which recently commissioned a new trading system that enabled the separation of the trading and post-trading activities.

The separation, according to the NSE, effectively enables the introduction of new products including covered short selling and day trading, which will revolutionize the capital markets and strengthen NSE’s position as the preferred investment hub in the region.

“Day trading is a welcome move for local investors who have previously lobbied for the activation of intra-day trading, as they seek to take advantage of price movements and increase their profit margins. We are confident of a bullish market performance going forward,” said Geoffrey Odundo, the NSE chief executive.

NSE chairman Kiprono Kittony noted that day trading will allow investors to trade on one position, two or three times per day, thus significantly increase the bourse turnover and attract more investors, further entrenching the NSE as an innovative and transformational Exchange in the region. Enditem

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