The Nairobi Securities Exchange (NSE) has reviewed the constituent counters of its NSE 20 and 25 share indices, with effect from 3rd April, 2018. The changes, which are in line with global best practice, were approved by the NSE board.
The market index is reviewed periodically to ensure that it reflects an accurate picture of market performance. The review of the NSE 20 share index incorporates the inclusion of Kenya Reinsurance Corporation Limited, NIC Group Plc and Nairobi Securities Exchange Plc as index constituent companies replacing CIC Insurance Group Limited, Stanbic Holdings Plc and Sasini Plc.
The review of the NSE 25 share index, on the other hand, incorporates the inclusion of Nairobi Securities Exchange Plc as an index constituent company replacing HF Group Plc.
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 Kshs20 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 one year.
- Must have a minimum market capitalization of Ksh1 billion
- Should ideally be a blue-chip with superior profitability and dividend record.
Following the review, the respective index constituent companies will be as follows:
NSE 20 Share Index constituents
Commercial & Services Sector
1. Nation Media Group
2. Scangroup Limited
Banking Sector
3. KCB Group Plc
4. The Cooperative Bank of Kenya Limited
5. Diamond Trust Bank Limited
6. Barclays Bank of Kenya Limited
7. Equity Group Holdings Plc
8. NIC Group Plc
Manufacturing & Allied Sector
9. East African Breweries Limited
10. British American Tobacco Kenya Limited
11. ARM Cement Plc
12. Bamburi Cement Limited
Energy & Petroleum Sector
13. KenolKobil Limited
14. Kenya Power & Lighting Limited
15. KenGen Limited
Insurance Sector
16. Britam Holdings Plc
17. Kenya Reinsurance Corporation Limited
Telecommunications and Technology Sector
18. Safaricom Plc
Investment Sector
19. Centum Investment Company Plc
Investment Services Sector
20. Nairobi Securities Exchange Plc
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NSE 25 Share Index Constituents
Commercial & Services Sector
1. Nation Media Group Limited
2. WPP Scangroup Limited
Banking Sector
3. Barclays Bank of Kenya Limited
4. Stanbic Holdings Plc
5. Diamond Trust Bank Kenya Ltd
6. Equity Group Holdings Plc
7. I&M Holdings Limited
8. KCB Group Plc
9. NIC Group Plc
10. Standard Chartered Bank Kenya Limited
11. Co-operative Bank of Kenya Limited
Manufacturing & Allied Sector
12. East African Breweries Limited
13. British American Tobacco Kenya Limited
14. ARM Cement Plc
15. Bamburi Cement Limited
Energy & Petroleum Sector
16. KenGen Co. Limited
17. KenolKobil Limited
18. Kenya Power & Lighting Co Limited
Insurance Sector
19. Britam Holdings Plc
20. CIC Insurance Group Limited
21. Kenya Re Insurance Corporation Limited
22. Liberty Kenya Holdings Limited
Investment Sector
23. Centum Investment Company Plc
Investment Services Sector
24. Nairobi Securities Exchange Plc
Telecommunications and Technology Sector
25. Safaricom Plc
