NSE has approved four securities to trade as single stock futures and will be available from Monday, 16th May 2022.
In a notice to shareholders, the NSE listed the securities as NCBA Group Plc, Co-operative Bank of Kenya(COOP), Standard Chartered Bank Kenya Limited(SCBK) and I&M Group, are the four securities.
Trading NEXT Single Stock Futures include provides a hedge against unfavourable share price movements; they are more liquid and easy to trade instruments; while positions in single stock futures allow investors to benefit from downwards or upwards movement of share prices; and investors can have exposure to share price movements without owning the underlying share.
Securities already trading as single stock futures include Safaricom Plc (SCOM), KCB Group Plc (KCBG), Equity Group Holdings Plc (EQTY), ABSA Bank Kenya Plc (ABSA), East African Breweries Ltd (EABL), British American Tobacco Kenya Plc (BATK), as well as the NSE 25 Share Index (N25I) and Mini NSE 25 Share Index (25MN).
\ NEXT was set up due to increased integration between the Kenyan financial markets and global markets; Increased volatility in asset prices in local and international financial markets while meeting the need by investors for more sophisticated risk management tools and strategies.
The idea was also to broaden and deepen Kenyan financial markets. NEXT enables one to trade in Equity Index Futures and Single Stock Futures.
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