The Nairobi Securities Exchange (NSE) has reviewed its two benchmark share indices, NSE 20 and NSE 25, dropping Kenya Airways from both counters for Jubilee and Stanbic.
In a statement, it said it has replaced Kenya Airways with Stanbic Holdings PLC on the NSE 20 share index and with Jubilee Holdings PLC in the NSE 25 share index to ensure they reflect an accurate representation of market dynamics.
“In line with global best practices, the Nairobi Securities Exchange (NSE) has reviewed the constituent counters of its two benchmark indices, the NSE 20 and NSE 25 Share Index incorporating the inclusion of Stanbic Holdings PLC and Jubilee Holdings PLC in the NSE 20 and NSE 25 Share Index respectively,” reads the statement effective from August 14.
Kenya Airways shares were suspended from trading on the NSE in July following an application by the company to pave way for restructuring and nationalisation.
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The Kenyan government owns 48.9 percent of the national carrier and it is expected to buy out the remaining holders of 51.1 percent of the shares.
Air France-KLM owns an almost 8 percent stake in Kenya Airways.
Local lenders own a 38.1 percent stake which they acquired in 2017 after KQ was unable to service its loans of Ksh16.9 billion.
The NSE 20 Share Index is a price-weighted index calculated as a mean of the top 20 best performing counters.
The constituent companies are selected based on weighted market performance during the period under review.
NSE 25 Share index, on the other hand, is a market capitalisation weighted index designed to represent the performance of the top 25 Kenyan companies listed on the NSE providing investors with a comprehensive and complementary benchmark to measure the performance of the Kenyan stock market.
To qualify to be on the NSE 20 Share Index, a company must have a minimum market capitalization of KSh20 million and KSh1 billion to be on the NSE 25 index.
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Following the review, the NSE 2o Share Index constituent companies will:
Banking Sector
Absa Bank Kenya
Equity Group Hpoldings
KCB Group
Diamond Trust Bank Kenya
The Co-operative Bank of Kenya
NCBA Group
Standard Charted Bank Kenya
Stanbic Holdings
Manufacturing and Allied Sector
East African Breweries
British American Tobacco Kenya
Commercial and Services Sector
WPP Scangroup
Nation Media Group
Construction and Allied Sector
Bamburi Cement
Energy and Petroleum Sector
Kengen
Kenya Power & Lighting Company
Insurance Sector
Britam Holdings
Kenya Re-Insurance Corporation
Investment Sector
Centum Investments Company
Investment Services Sector
Nairobi Securities Exchange
Telecommunications Sector
Safaricom Plc
