NSE to launch ETF products to boost liquidity
26 October 2015 Nairobi
Image: Shutterstock
The Nairobi Securities Exchange (NSE) is preparing to launch with exchange-traded fund (ETF) and derivatives add-ons.
The move aims to improve market liquidity and allow more local investors to play a bigger part in the market.
Currently, 70 percent of trading on NSE is done by foreign investors.
NSE will become only the second exchange in sub-Saharan Africa, after Johannesburg, to allow ETFs to be traded.
The new services expansion comes less than a month after the NSE announced plans to offer a securities lending facility to allow short selling on the exchange.
Kenya’s economy has struggled this year in an environment of global market disruption. The list of new products is part of a NSE initiative to restore investor confidence, which has dropped 17 percent since the start of the year.
The move aims to improve market liquidity and allow more local investors to play a bigger part in the market.
Currently, 70 percent of trading on NSE is done by foreign investors.
NSE will become only the second exchange in sub-Saharan Africa, after Johannesburg, to allow ETFs to be traded.
The new services expansion comes less than a month after the NSE announced plans to offer a securities lending facility to allow short selling on the exchange.
Kenya’s economy has struggled this year in an environment of global market disruption. The list of new products is part of a NSE initiative to restore investor confidence, which has dropped 17 percent since the start of the year.
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