Kenya: NSE to offer ETFs
The move is part of a diversification effort from the stock exchange.The Capital Markets Authority (CMA) is expected to approve the Nairobi Securities Exchange's (NSE's) first exchange traded fund (ETF) this year.
The NSE's Chief Executive, Geoffrey Odundo told Reuters it had been investing in new infrastructure to allow the trading of new products, such as ETFs.
"Almost 95 per cent of all product development is complete. We are at a very imminent phase of launching many products. We are looking at ETFs coming into play," he said.
ETFs are securities traded on exchanges that can allow investors to hedge their risk, as they are based on underlying assets such as commodities or a basket of stocks.
The NSE is looking to diversify the market, as it struggles with poor liquidity. Earlier this month, it issued a profit warning for the year after a fall in share trading.