Stanbic and Jubilee Holdings have been included in the Nairobi Securities Exchange (NSE) NSE 20 and NSE 25 Share Index respectively. In a statement, NSE said the change took effect on 14th August 2020 and the two counters replace Kenya Airways stock.
NSE says the review of its two benchmark indices is in line with global best practice to reflect an accurate performance of the market. Kenya Airways shares were recently suspended from trading.
The NSE 20 Share Index is price weighted index calculated as a mean of the top 20 best performing counters. The companies should have at least 20 percent of the shares listed at the NSE, have a minimum market capitalization of Ksh20 million and be continuously quoted for at least 1 year.
Consequently the NSE 20 share index will include; ABSA Bank, Equity Group, KCB Group, Diamond Trust Bank, Co-Op bank, NCBA Group, Standard Chartered Bank, Stanbic Holdings, East African Breweries, British American Tobacco, WPP Scangroup, Nation Media Group, Bamburi Cement, KenGen, Kenya Power, Centum Investment, Nairobi Securities Exchange, and Safaricom Plc.
The NSE 25 Share index is a market capitalization weighted index representing the performance of the top 25 Kenyan companies listed on the NSE. The index provides investors with a comprehensive performance of the Kenyan bourse.
Firms in the index must have their primary listing on the NSE, have at least 20 percent of their shares quoted at the NSE, and have a minimum market capitalization of Ksh1 billion.
As a result, the NSE25 Share index will include ABSA Bank, Equity Group, I&M Holdings, KCB Group, Diamond Trust Bank, Co-Op bank, NCBA Group, Standard Chartered Bank, Stanbic Holdings, WPP Scangroup, Nation Media Group, Bamburi Cement, KenGen, Total Kenya, Kenya Power, Britam Holding, CIC Insurance Group, Kenya Re, Liberty Kenya Holdings, Jubilee Insurance, Centum Investment, Nairobi Securities Exchange, British American Tobacco, East African Breweries, and Safaricom Plc.