NSE launches new index for listed firms

The Nairobi Securities Exchange, in conjunction with the FTSE International Group, on Tuesday launched a shared index series that will assess the performance of Kenyan companies that are listed on the stock exchange.

FTSE, the London’s equivalent of Kenya’s NSE (Nairobi Securities Exchange).

The FTSE NSE Kenya index series is designed to provide investors and traders with a complete set of indices that will measure the performance of the major industry and capital segments at the Kenyan stock market.

Speaking during the event, Mr Peter Mwangi, the CEO of the Nairobi Securities Exchange, said that the launch of the indices marks a new milestone for the NSE, and shows the growing interest in domestic investment opportunities in Kenya.

Measure performance

The new indices, he said, “will act as a gauge by which our investors can measure the performance of their portfolios.”

“They also act as a foundation for the development of index related products such as Exchange Traded Funds,” he added.

The FTSE NSE Kenya Index Series comprises of two indices that will concurrently assess the performance of stocks in the market.

The first is the FTSE NSE Kenya 15 index, which will calculate the performance of the 15 largest stocks trading in the market.

The second is the FTSE NSE Kenya 25 Index, which will assess the 25 most liquid stocks.

According to FTSE, both indices will be calculated in Kenyan Shillings and US Dollars, and will be availed to investors and traders both during trading hours and at the end of the day.

It is the first time the Index Series has been launched in East and Central Africa.