The Nairobi Securities Exchange (NSE) has introduced two new market indices: the NSE 10 Share Index (N10) and the NSE Bond Index (NSE-BI), saying the move is aimed at enhancing its offerings to investors.
NSE 10 Share Index (N10 Share Index )
The N10 Index, which comes into effect immediately, will monitor the performance of the equities market. This index will consist of 10 prominent companies, including Safaricom Plc, Equity Group Holdings Plc, KCB Group Plc, and others. It’s worth noting that the list of constituent companies will undergo a semi-annual review. The N10 Index utilizes a market capitalization float-adjusted methodology and provides daily distribution.
NSE Bond Index (NSE-BI)
The NSE-BI, set to launch on October 1, 2023, will focus on the bonds market. It will be a weekly index distributed alongside the NSE Yield curve. This index will be based on benchmark Government bonds listed on the NSE. Importantly, it is expected to play a pivotal role in the issuance of fixed-rate future contracts in the NSE derivatives market.
Changes in NSE 20 Share Index
In a bid to align with best practices in index management, NSE has made alterations to the NSE 20 Share Index. WPP Scan Group Plc, Nairobi Securities Exchange Plc, and Diamond Trust Bank Kenya have been replaced by CIC Insurance Group Plc, Bank of Kigali Group Plc, and I&M Holdings Plc as constituent companies, effective immediately.
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