How to Buy Diamond Trust Bank Shares on the NSE
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Diamond Trust Bank (DTB) shares have reached a significant milestone, hitting a 52-week high of Ksh 83.25 during the latest trading session at the Nairobi Securities Exchange (NSE).
This marks a notable increase from the previous high of Ksh 75.00 recorded on December 30, 2024.
If you’re looking to invest in Diamond Trust Bank shares, here’s a step-by-step guide to buying them on the NSE:
1. Find a Licensed Stockbroker
To trade on the NSE, you must go through a stockbroker registered with the Capital Markets Authority (CMA) of Kenya. Several brokers, including AIB-AXYS Africa, facilitate stock trading and provide advisory services. A full list of licensed brokers is available on the NSE website.
2. Open a Central Depository System (CDS) Account
A CDS account is necessary for holding shares electronically. Your chosen stockbroker will assist you in opening this account, which ensures secure safekeeping and transfer of your securities.
3. Fund Your Trading Account
Once your CDS account is active, deposit funds into your trading account through your broker. You can use bank transfers or other payment options provided by your broker. Ensure you have sufficient funds to cover the cost of the DTB shares you wish to purchase, considering the current market price.
Read: DTB Lowers Lending Rates
4. Place Your Order
With funds in your account, you can now place an order to buy DTB shares. You have two main options:
- Market Order: Buy at the prevailing market price.
- Limit Order: Set a maximum price at which you’re willing to buy the shares.
Documents required to buy shares in Kenya
- A copy of your national ID or passport
- A black and white passport-sized photo
- Your Kenya Revenue Authority (KRA) Personal Identification Number (PIN)
5. Trade Execution
Your broker will execute the transaction on your behalf. The NSE operates on a T+3 settlement cycle, meaning your shares will be transferred to your CDS account three business days after the trade is completed.
6. Monitor Your Investment
After purchasing DTB shares, stay updated on the bank’s financial performance, stock market trends, and economic developments. You can track share prices through financial news platforms or your broker’s system.
Read: Nasim Devji Set To Takeover Diamond Trust Bank Operations in East Africa
7. Key Considerations
- Minimum Purchase: The NSE typically requires a minimum lot size of 100 shares per trade.
- Taxation: A 15% withholding tax applies to capital gains, while dividends are subject to a 5% withholding tax for local investors.
- Transaction Costs: Brokerage fees usually range around 2% per transaction, in addition to other administrative charges.
8. Selling Your Shares
When you decide to sell your DTB shares, the process mirrors buying but in reverse. You’ll place a sell order through your broker, specifying the number of shares and your desired selling price.
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