Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Sunday, April 18, 2021
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN

All eyes on NSE as futures trading kicks off

Futures contracts provide investors with risk management tools in the wake of unexpected volatility in asset prices

Chacha Mwita by Chacha Mwita
May 26, 2020
in Kenya, NSE
0
Nairobi Security Exchange’s top share index-NSE 20 shed some 43.09 points or 1.67 per cent to stand at 2543.59 on Friday, even as volumes rose from the previous trading. The index that tracks blue chip companies at the bourse has been on a downward streak in recent weeks, affecting other indices. NSE market turnover for Friday however stood at Ksh332 million (US$3.2 million) from the previous session’s Ksh179 million (US$1.7 million) as the number of shares traded rose to 12.5 million against 9.9 million posted the previous day. Safaricom was the week’s biggest mover.

Live trading at NSE

Share on FacebookShare on LinkedIn

Investors are keen on new developments at the Nairobi Securities Exchange (NSE) as the market opens its counters for derivatives trading.

The NSE Derivatives Market (NEXT) futures start trading today with the official launch of the market slated for Thursday, July 11, 2019.

“NEXT provides new opportunities to investors, enabling them to better diversify their portfolios, manage risk, and deploy capital more efficiently,” NSE Chief Executive Geoffrey Odundo said.

Futures contracts provide investors with risk management tools in the wake of unexpected volatility in asset prices.

READ:NSE gets green light for Derivatives Market

NEXT will also enable Kenya to consolidate its position as a leading financial services hub offering a wide variety of investments products.

The  NEXT will commence with index futures and single stock futures on selected indices and stocks respectively, the bourse’s management said.

The Exchange will initially offer index futures contracts on the NSE25 Share Index and single futures on Safaricom Plc, Kenya Commercial Bank Group Plc, Equity Group Holdings Plc, KenGen Co. Plc, East African Breweries Ltd, British American Tobacco Kenya Plc and Bamburi Cement Ltd.

The above single stock futures have been selected based on a number of aspects.

One, the security underlying the futures contract must be a listed instrument on the Nairobi Securities Exchange.

Second, the security underlying the futures contract shall be chosen from amongst the constituents of the NSE 25 Share Index and third, the security underlying the futures contract must demonstrate a minimum average daily turnover of Ksh7 million (US$68,401 ) over the last six months before review.

Finally, the security underlying the futures contract must have a market capitalization of at least Ksh50 billion (US$488.9million).

All futures contracts listed on NEXT will have quarterly expiry dates; this will be the third Thursday of March, June, September and December of every year. All NEXT futures contracts will initially be cash settled.

In line with global practice in safeguarding market infrastructure and investor interests, the Exchange has also established the Settlement Guarantee Fund (SGF) and the Investor Protection Fund (IPF).

The main purpose of the SGF is to settle specified claims by derivatives members arising out of transactions in derivative securities while the main purpose of the IPF is to satisfy specified claims by the investing public arising out of non settlement of obligations owed to them by trading members or losses incurred by reason of the default of trading members.

READ ALSO:How NSE is preparing small companies for listing at the bourse

Tags: AfricaEast AfricaKenyaNairobi Securities Exchange (NSE)NSE Derivatives Market (NEXT)
Chacha Mwita

Chacha Mwita

Chacha Mwita is a business reporter based in Kenya. He covers equities, capital markets, trade and the East Africa economic developments.

Related Posts

Kenya Automates import export processes to boost efficiency AFA-IMIS platform (Source TMEA)
Countries

Kenya Automates import/export processes to boost efficiency  

April 6, 2021
Insurance sector (Freepik)
Countries

How insurance penetration can be improved in Kenya

April 16, 2021
stock-market
Countries

Corporate actions dominate investment theme

March 31, 2021
Next Post
The Competition Authority of Kenya has approved the acquisition of a controlling stake in Almasi Beverages Limited by Coca-Cola Sabco (East Africa) Limited, in one of the latest mergers and acquisitions in Kenya.

Here are Coca-Cola's new beverages

A fish farming project in rural Sierra Leone. Africa’s small-scale fisheries are a potential multi-billion dollar employer, in addition, to playing a critical role in global food security and must be supported by greater research and investment www.theexchange.africa

The untapped billions in Africa’s small-scale fisheries

Tanzania has twice burned chicks from Kenya and auctioned animals seized from Kenyan herders. The country’s ‘jilted lover’ attitude hinders uniting East Africa with its actions betraying its unwillingness to make EAC work www.theexchange.africa

Tanzania’s ‘jilted lover’ attitude hinders uniting East Africa




This months edition

Features

Let’s market East Africa as a single investment destination- EABC Pic
Countries

East Africa Business Council fast tracking Congo to join EAC

by Kawira Mutisya
April 2, 2021
0

The opportunities for trade in the DRC are huge for the EAC—the value of goods the country imported in 2019 stood at US$6.6...

Read more
Ethiopian Airlines- The Exchange (aviation)
Aviation

Propelling Africa’s Aviation sector to greater heights  

April 1, 2021
Flowers (Kenya Flower Council- KFC)
Agribusiness

Kenya-UK trade deal—silver lining from a budding sector 

April 1, 2021
Kenya Automates import export processes to boost efficiency AFA-IMIS platform (Source TMEA)
Countries

Kenya Automates import/export processes to boost efficiency  

April 6, 2021
Women access to digital finance
Agribusiness

Empowering women farmers to access financing 

April 16, 2021

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap
No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Designed by Mediapix.

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Sign up to The Exchange Africa’s Newsletter and access Africa’s the latest investment trends, commentary and exclusives on the Continent. Sign up and access 5 free Premium articles!

Support Quality African Journalism!