The Nairobi Securities Exchange (NSE) has scrapped the trading fees for investors to increase activation and enhance day trading.
The initiative is to attract investors toward the stock market and boost liquidity.
The waiver will apply to investors taking a position to exit on the second leg for a month starting Wednesday, July 6, 2022, according to Mr Geoffrey Odundo, the NSE’s chief executive.
“If you take a position and want to exit it on the second leg, that will be free…We, as NSE, are making an offer today to increase activation and enhance day trading. We are giving a one-month offer for free on day trading.”
“The price-to-earnings ratios of this Market are still very low. We are looking at about 9.54 multiples; ideally, if you look at most markets, they go above 13, 14, and 15 times.”
He was speaking Wednesday during the NSE Quarterly Media Briefing.
Day trading is one of the NSE’s flagship initiatives to drive liquidity by allowing traders to buy and sell shares of the same security on the same account on the same day.
Day trading is the practice of purchasing and selling a security within a single day or trading session or multiple times over the course of the day.
Currently, the NSE offers a 5% discount on the second leg of trading.
Day trading will also complement the derivatives market launched in 2019. Derivatives allow investors to make a gain or hedge against losses by betting on the future price movement.
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