Kenya’s derivatives market trading hits new high

Kenya's derivatives market trading hits new high

Researchers warn of 20 major Atlantic storms in 2021 NAIROBI, July 8 (Xinhua) — Trading at the Kenya’s derivatives market hit a two-year high in the first half of the year as the value of securities traded rose to 148 million shillings (about 1.4 million U.S. dollars), the Nairobi Securities Exchange (NSE) said on Thursday.

The performance marks a 668 percent turnover gain over a similar period in 2020.

According to the NSE, there has been a significant surge in daily turnover since the launch of the segment in 2019.

NSE chief executive Geoffrey Odundo noted recently that the improved trading at the segment demonstrates the confidence in the market despite the COVID-19 disruption.

On Wednesday, securities worth 9,056 dollars were traded at the derivatives market, sustaining the 9,242 dollars average worth of securities traded that the market has sustained in the last weeks.

The NSE derivatives market is the second in sub-Saharan Africa, with the other one being in Johannesburg, South Africa.

Derivatives markets allow investors to make a gain or a hedge on assets like bonds, commodities and interest rates against losses by taking a bet on future price movements.

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