Nairobi Securities Exchange (NSE) Plc is waiving the NSE transaction fee (0.12 percent) on all day trades in shares for the next 30 days from 6 July 2022 to support activity and liquidity on the ailing exchange.
This comes after the exchange introduced day trading for stocks in November 2021 and reduced transaction fees by five (5) percent for stock investors using the same day trading model.
As a result, the NSE levy was reduced from 0.12 percent to 0.114 percent of the transaction value after an applicable five (5) percent rebate, while the Capital Markets Authority (CMA) and Central Depository and Settlement Corporation (CDSC) were unchanged from 0.12 percent and 0.08 percent, respectively.
On Wednesday, stock market executives decided to temporarily scrap the entire NSE levy of 0.12 percent for 30 days to ease activity to boost the stock market since the beginning There has been a massive outflow of foreign investors this year.
< p>Foreign investors flee frontier and emerging markets in search of safer markets following a rise in US interest rates and news of Sri Lanka defaulting on its debt obligations at first times in its history.
The situation was aggravated by events in the Kenyan environment, including uncertainty about August’s general election, a weakening currency, dollar shortages, rising cost of living and general retail investor apathy towards the stock market.
“The market is currently trading at an historic discount, giving investors a unique opportunity to invest in the securities of companies with strong fundamentals,” said Geoffrey Odundo, Chief Executive of NSE, which helps unscrupulous traders target unsuspecting investors exploit through insider trading.