The NSE 10 Share Index (N10) and the NSE Bond Index (NSE-BI) are two new market indices that the Nairobi Securities Exchange Plc (NSE) wishes to inform the investing public of the launch of. The two indices will each monitor the performance of the bond and equity markets. This action is the result of protracted discussions with numerous parties, including potential issuers of structured products like Exchange Traded Funds (ETF).
Safaricom Plc, Equity Group Holdings Plc, KCB Group Plc, The Co-operative Bank of Kenya Limited, ABSA Bank Kenya Plc, East African Breweries Plc, NCBA Group Plc, Kenya Electricity Generating Company Plc, Kenya Re Insurance Corporation Limited, and Centum Investment Co. Plc are the ten companies that will form the basis of the N10 Index. Semi-annual reviews of the constituent companies’ list will be conducted. This index’s use of a market capitalization float-adjusted methodology and daily distribution are two of its most important features.
The NSE Bond Index (NSE-BI), on the other hand, will be a weekly index that is distributed together with the NSE Yield curve. The benchmark government bonds listed on the Nairobi Securities Exchange will serve as the index’s foundation. This index is anticipated to be a component of fixed-rate future contracts offered on the NSE derivatives market. Beginning on October 1, 2023, the market will have access to this index.
Last but not least, the NSE has reviewed the current NSE 20 Share index in accordance with best practices for managing indices, replacing WPP Scan Group Plc, Nairobi Securities Exchange Plc, and Diamond Trust Bank Kenya on the list of constituent companies with CIC Insurance Group Plc, Bank of Kigali Group Plc, and I&M Holdings Plc, respectively. These modifications are now in effect.
The creation of the new equity index, which will use a market capitalization float-adjusted methodology, and the new bond index will improve our investors’ ability to efficiently monitor the performance of listed securities on the NSE, said Mr. Geoffrey Odundo, Chief Executive of the NSE, in a statement regarding the launch of the indices.
