Kenol-Kobil has been dropped from the two main indices of the Nairobi Securities Exchange and replaced with Kenya Airways and Total Kenya.
This follows the approval by KenolKobil board and Capital Markets Authority for the French firm Rubis Energie to take over the oil marketer.
A statement from the NSE said the company has been replaced in the 20 and 25 share indices by Kenya Airways and Total Kenya respectively.
“The market index is reviewed periodically to ensure that it reflects an accurate picture of market performance,” a statement by NSE said.
Total Kenya is the only oil marketer whose shares are trading at the bourse.
The NSE 20 Share Index is a price weight index calculated as a mean of the top 20 best performing counters. The constituent companies are selected based on a weighted market performance during the period under review based the following criteria:
- Trading activity measures i.e. market capitalization, shares traded, deals/liquidity and turnover during the period under review are weighed in the ratio of 4:3:2:1 respectively;
- A company must have at least 20% of its shares quoted at the NSE;
- Must have a minimum market capitalization of Kshs. 20 million;
- A company should ideally be a blue chip with superior profitability and dividend record.
The NSE 25 Share index is a market capitalization weighted index designed to represent the performance of Kenyan companies listed on Nairobi Securities Exchange providing investors with a comprehensive and complementary benchmark to measure the performance of the Kenyan securities market.
In order for a company to qualify for inclusion in the NSE 25 share Index, the issuer shall fulfill the following conditions:
- Shares must have their primary listing on the Nairobi Securities Exchange.
- Must have a least 20% of its shares quoted on the NSE.
- Must have been continuously quoted for a least 1 year.
- Must have a minimum market capitalization of Kes. one billion
- Should ideally be a “blue chip” superior profitability and dividend record