NSE launches intraday trading – Business Daily

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NSE launches intraday trading


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A stockbroker on the trading floor of the Nairobi Stock Exchange. profile picture | NMG

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  • The Nairobi Securities Exchange (NSE) finally launched intraday trading on Monday, two years after creating a system that separates trading and post-trading activities, thus allowing trading positions multiple times during the day.
  • The move is welcome news for investors and traders looking to profit from small price movements and timely events that can affect stock prices.

Investors can now buy and sell shares of the same company multiple times within a day while taking advantage of small price movements.

The Nairobi Securities Exchange (NSE) finally launched intraday trading on Monday, two years after creating a system that separates trading and post-trading activities, thus allowing trades to be traded multiple times during the day.

The move is welcome news for investors and traders looking to profit from small price movements and timely events that can affect stock prices.

It will also help NSE to increase revenue from commissions charged on transactions through increased trading volume.

The regulator has set a discount on the second part of the deal which will be charged at 0.114 percent compared to normal trades charged at 0.12 percent.

“Day trading is a welcome move for local investors who have lobbied in the past to revitalize intraday trading, as they seek to take advantage of daily price movements and increase their profit margins. We are confident that the market will perform bullishly in the future,” said Mr. Jeffrey Odondo, CEO of NSE. “.

Experts say that trading and settlement on the same day would deepen liquidity in the exchange, which fell in the third quarter to 1.1 percent compared to 1.41 percent in the previous quarter according to the Capital Markets Authority (CMA).

Despite this, the market has been in a slow recovery with significant activity attributed to blue-chip stocks such as Safaricom, Bank Counters, East African Breweries and British American Tobacco along with increased investor interest in alternatives especially fixed income investments.

NSE believes that successful implementation of new initiatives tends to boost NSE’s recovery after the significant impact of the COVID-19 pandemic.

The NSE 25 stock index hit a 12-month high of 4,075 points in August this year recording a record market value of Sh2.9 trillion.

The increase in market activity is an indication of the steady growth of listed companies in the stock market and is a reflection of the positive future expectations across various sectors of the economy.

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