NSE sets Nov 1 as start date for day trading

The start of day trading only awaits the issuance of a letter of no objection from the Capital Markets Authority (CMA) according to NSE Chief Executive Officer Geoffrey Odundo.

Odundo is betting on the start of intra-day trading which he terms as the creation of momentum to bolster activity at the NSE after what has been largely a quiet year for the markets so far.

“Immediately we hit day trading, you will see turnovers improve because we are hoping people will be now able to buy and sell stocks on the same day on small spreads and we will also be reducing costs for those particular trades,” he said.

Day trading refers to the practice of purchasing and selling a security within a single day trading session.

The NSE has nevertheless extinguished hopes for an additional listing this year citing the tough economic environment occassioned largely by the COVID-19 pandemic.

Even so, Odundo is betting the bourse can break its dry spell with a substantive Initial Public Offer (IPO) listing early next year.

“The pipeline is still going in terms of processed interests. One or two (entities) are looking at how they can upgrade themselves to the higher markets. We will be seeing the listing of secondary offer shares. This is our hope,” he added.

“Despite the difficult economic environment, we have been able to have fairly reasonable levels of trading. We are just 16 per cent below last year’s Equities trading and 48 per cent above 2020 levels on bond trading.”

Other activities iniated by the NSE to boost market activity have included the unquoted securities platform (USP), the Ibuka listings incubator hub and derivatives trading.

The intra-day day trade is expected to be non-leveraged meaning it won’t be reliant or comprise of borrowed funds.