Web Money Trader... Your All Times Stock Exachange Manager!

Archives 2022

Nairobi Stock Exchange begins day trading

What is day trading?

Day trading is the practice of buying and selling a security within a single day, or within a trading session or even doing so multiple times over the course of the day.

As a motivation to get day traders to the market, the Board of the Nairobi Stock Exchange has approved a discount on trade transactions cost. The exchange usually charges 0.12% commission on trades, but for day traders, that has been reduced to 0.114% on the second leg of transactions.

This implies that the usual 0.12% will be charged on the buy trades but the sell trades will attract 0.114% commission. For short-sellers, the 0.12% will be charged on the short sell, while the 0.114% will be charged on the buy to cover trades.

In preparedness for the day trading activities, the Exchange commissioned a new trading system in 2019, a system that has helped separate trading and post-trading activities. Such separation has also enabled the Exchange to introduce new financial products like Covered Short Selling and Day Trading with the hope that those would lead to the revolutionization and strengthening of the Nairobi Exchange as the “preferred investment hub for the region.”

According to the CEO of the Exchange, Mr Geoffrey Odundo, “Day trading is a welcome move for local investors who have previously lobbied for the activation of the intraday trading, as they seek to take advantage of intraday price movements and increase their profit margins.

“We are confident of a bullish market performance going forward,” he said.

Speaking in agreement with Mr Odundo and reiterating on the value day trading could add to the Exchange and the market, the Chairman of the Exchange, Mr Kiprono Kittony, EBS, noted that “Day trading will allow investors to trade on one position, two or three times per day. This will significantly increase our turnovers and attract more investors to the bourse, further entrenching the NSE as an innovative and transformational Exchange in the region.”

Not only will the introduction of day trading enhance the liquidity of the Kenyan market, but it is also hoped that it will increase investor participation in the market. It is also expected that it would help the market rebound more strongly from the effects of Covid-19.

Nairobi Securities Exchange reviews NSE 20 share index

NAIROBI, KENYA: The Nairobi Securities Exchange has reviewed the constituent counters of its NSE 20 and 25 Share Index, with effect from April 3.

The review of the NSE 20 share index incorporates the inclusion of Kenya Reinsurance Corporation Limited, NIC Group Plc and Nairobi Securities Exchange Plc as index constituent companies replacing CIC Insurance Group Limited, Stanbic Holdings Plc and Sasini Limited.

On the other hand the review of the NSE 25 shares Index incorporates the inclusion of Nairobi Securities Exchange Plc as an index constituent company replacing Housing Finance Group.

The NSE 20 Share Index is a price weight index calculated as a mean of the top 20 best performing counters. The constituent companies are selected based on a weighted market performance during the period under review based on among others trading activity measures, company must have at least 20 percent of its shares quoted at the NSE.

The NSE 25 Share index is a market capitalization weighted index designed to represent the performance of Kenyan companies listed on Nairobi Securities Exchange providing investors with a comprehensive and complementary benchmark to measure the performance of the Kenyan securities market.

AELP Goes Live on Cross-border Trading

Friday, 18th November 2022 – The AELP has today gone live on integrating the African capital markets by facilitating cross-border trading and free movement of investments in the continent through the AELP Link platform. The go-live happened when the platform was officially switched on at 0000 UTC. The interconnectivity platform enables the trading of exchange-listed securities across 7 participating securities exchanges.

Commenting on the go-live, the ASEA President Dr. Edoh Kossi Amenounve said “The go-live today of the AELP Link is a great milestone towards achieving ASEA’s mission to engage African capital market ecosystems in order to foster capital mobilization, promote sustainability, and enhance financial inclusion for the benefit of Africa’s economic development.

Trading infrastructure harmonization through the Link is expected to ease existing trading processes and potentially reduce the cost of trading across African capital markets. I therefore congratulate all the participating exchanges and the respective brokers for being front-runners in this great pan-African integration initiative”.

The AELP, a flagship project of the African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB) is aimed at facilitating cross-border trading among seven participating Exchanges and select broker firms. The AELP Phase 1 is funded by a grant from the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund managed by the African Development Bank.

The seven Exchanges participating in Phase 1 of the AELP are: Bourse Regionale des Valeurs Mobilieres (BRVM), Bourse de Casablanca, The Egyptian Exchange (EGX), Johannesburg Stock Exchange (JSE), Nairobi Securities Exchange (NSE), Nigerian Exchange Limited (NGX), and Stock Exchange of Mauritius (SEM).

In July 2021, ASEA signed a contract with DirectFN Ltd for the design and implementation of the AELP Link trading system in the seven markets. The Link which is hosted on the Oracle Cloud Infrastructure (OCI) has been designed to integrate with exchange and broker trading systems, and is available in English, French and Arabic. It aggregates live market data from the Exchanges and enables brokers to access information and see the market depth and liquidity of the foreign market of interest.

Stockbrokers and Securities Dealers are critical stakeholders in the Linkage process. Through the coordination of the Exchanges and the African Stockbrokers and Securities Dealers Association (ASSDA), each exchange will connect 5 stockbrokers or securities dealers to the AELP Link. In the first phase of the project 33 Stockbrokers have connected as at go-live.

The selection of participating Stockbrokers and Securities Dealers was based on agreed criteria, and expression of interest by approved licensed dealing members from each of the participating Exchanges. The ASSDA Organizing Secretary, Mr. Willie Njoroge observed that “this is a historic moment for Africa, to finally actualize the linking of stock exchanges across Africa after many unsuccessful attempts over the last 2 decades.”

The AELP test environment has been operational since July 2022 enabling the stockbrokers and securities dealers to familiarize themselves with the platform and execute mock trades. This culminated in the completion of the User Acceptance Testing on 7 November paving the way for the technical go-live today.

The participating stockbrokers have already embarked on signing counterparty broker agreements between different markets. The sponsoring stockbrokers enable access to their domestic markets to sponsored stockbrokers from other markets and vice versa. The sponsoring broker will clear and settle trades in the host market using their local currency in compliance with the host market’s rules and practices. The regulatory bodies in all the participating markets are therefore apprised on the progress.

A ceremonial launch of Phase 1 and demonstration of live cross-border trades will be held alongside the 2022 ASEA Annual General Meeting & Annual Conference on 7th December 2022 at 9:00am GMT in Abidjan, Cote d’Ivoire.

Future phases of the project may include automated cross-border payment systems, participation of additional ASEA member Exchanges and their respective brokers and additional brokers from the current participating Exchanges after the pilot phase. Botswana Stock Exchange (BSE) and Ghana Stock Exchange (GSE) will kick off Phase 2 of the AELP with technical connectivity to the Link expected to commence in 2023.

SMEs in JSE’s inaugural development programme raise nearly R1 billion and post strong performance

Johannesburg, 15 December 2022:  The Johannesburg Stock Exchange (JSE) is delighted to announce that 16 medium-sized companies that participated in the JSE Enterprise Acceleration Programme performed exceptionally, growing their average annual turnover by 56% and employment by 32%.

The companies – which are regarded as future leaders in the technology, education, and construction industries – were honoured on Monday, the 12 of December at a graduation ceremony that took place at the JSE, where their founders were awarded for successfully completing the 9-month programme.

“We congratulate all 16 companies that graduated from the programme over the past 18 months. These companies have displayed outstanding commitment to improving their competitiveness and performance, which is reflected in their phenomenal growth,” says Vuyo Lee, the JSE’s Director of Marketing and Corporate Affairs.

Apart from assisting the companies to raise capital and access new markets in the United States, Australia, the United Kingdom, and Africa, the programme has distinguished itself by providing an ecosystem of advisors, mentors and networks that propelled the graduate companies into their next growth phase.

Prior to fully rolling out the JSE Enterprise Acceleration Programme (JEAP) earlier this year, the JSE launched a pilot in 2021 that recruited five high-growth companies, namely MobizSigncraft AfricaSynaticSaryx and Sendmarc. They were later joined this year by the first cohort of the programme comprising 11 companies from various industry sectors. The companies that joined the acceleration programme in 2022 were Spark SchoolsFinclusionClevvaIContact BPOInoxicoStructureITDealX , FlowCentric , Nafasi Water, iiDentifii and TSK Construction.

The JSE Enterprise Acceleration Programme aims to support the growth of medium-sized companies sustainably, thereby driving employment and economic growth in South Africa. Its development was a culmination of extensive research and consultation processes that the JSE undertook with over 22 incubators, policymakers, financial institutions, and SME development experts. The JSE collaborated with SME incubation specialists, Endeavor, to launch and implement the programme.

Since the programme began, it has assisted the companies to register a strong business performance. They have raised a total of R1 bn in capital, which has enabled them to drive their expansion. Furthermore, the companies have grown their average annual revenue by 56% to a combined R2 billion in turnover, with the strongest performer growing its turnover by 250%.

In terms of employment creation, the graduates have increased their workforce by an average of 32% to nearly 2,500 employees.

“We are confident that the mentoring and coaching the JSE Enterprise Acceleration Programme graduates received will propel them from being medium-sized companies to large enterprises that create jobs and contribute significantly to the South African economy,” says Lee.

In 2023, the JSE will welcome the second cohort of 14 companies to join the programme which includes MakwandeTake Note ITKGB Holdings4-Sure555 Media Hub, Data InnovatorsTautona HoldingsLethabo Exploration, Zammane Group, Projectized ManagementTotal ServeAdvannotech, MResources, and Opal Mining. All of the companies in the 2023 cohort are black-owned, with over 30% of the companies being founded by women.

“We are excited to work with the second cohort of companies and we are hopeful that they will take advantage of the tools and resources that our JSE Acceleration Programme has to offer to leapfrog their businesses into the next growth trajectory,” concludes Lee.