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KCB Contracts Most Traded Futures in the Derivatives Market 1H20

KCB Group {KCBG} contracts were the most actively traded contracts both in terms of volume and turnover in the first half of 2020 according to a report issued by the NSE’s on derivatives activity from 2nd January to June 30th. 2020.

According to a report released by the NSE, KCBG registered a volume of 186 contracts representing a turnover of KES 7.9 million. The second most actively traded security was the Safaricom Single Stock Futures {SCOM} contracts with a turnover of Kes 4.2 million. According to the report, figures from 2H2019 showed a preference for SCOM contracts with a turnover of Kes 11 million and volume of 394.

The derivatives market registered a total turnover of Kes 19.3 million and a total volume of 473 contracts between 2nd January 2020 and 30th June 2020. The average daily turnover for the overall period was approximately Kes 257,000 with a peak of approximately Kes 446,000 in February 2020. The July 2019 to December 2019 period registered a total turnover of Kes 20.5 million and an average daily turnover of Kes 214,025.

In terms of broker activity, AIB Capital (now AIB-AXYS) dominated market activity. AIB registered a turnover of KES 16.8 million representing approximately 43% of total turnover for the 2020 period. Sterling Capital accounted for 22% of turnover while Standard Investment Bank accounted for 10% of turnover for the 2020 period. AIB Capital and
Sterling Capital were also the most active members in 2H2019.

Open interest on the contracts rose steadily over the period with experienced declines after the 19th March 2020 and 18th June 2020 contract expiry dates. There was, however, a significantly lower decline in open interest after the June expiry compared to the March expiry indicating increasing preference by investors to roll over contracts before expiry and to trade longer dated contracts.

Today marks exactly one year since the NSE launched the derivatives market!