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. The changes have seen Stanbic Holdings PLC join the elite 20 Share Index while and Jubilee Holdings PLC has been included in the NSE 25 Share Index, both replacing Kenya Airways, which has been experiencing lots of turbulence over the past few years.
The changes took effect on 14th August 2020. The market indices are reviewed periodically to ensure they reflect an accurate representation of market performance.
The NSE 20 Share Index, the main market performance barometer, is price-weighted index calculated as a mean of the top 20 best performing counters. Kenya Airways lost its status in the indices after recording losses consistently with no dividend paid during the period.
The constituent companies are selected based on a weighted market performance during the period under review based on 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 Ksh20 million.
- Must have been continuously quoted for at least one year.
- 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 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.
The NSE 20 Share Index companies are selected based on a weighted market performance during the period under review based the following criteria:
- Shares must have their primary listing on the Nairobi Securities Exchange.
- Must have at least 20% of its shares quoted on the NSE.
- Must have been continuously quoted for at least 1 year.
- Must have a minimum market capitalization of Ksh1 billion.
- Should ideally be a “blue chip” superior profitability and dividend record.
See Also >> Full List of Companies Listed on the NSE
Following the review, the NSE 20 Share Index companies will be as follows:
Banking Sector
1. Absa Bank Kenya Plc
2. Equity Group Holdings Plc
3. KCB Group Plc
4. Diamond Trust Bank Kenya Ltd
5. The Co-operative Bank of Kenya Ltd
6. NCBA Group Plc
7. Standard Chartered Bank Kenya Ltd
8. Stanbic Holdings PLC
Manufacturing & Allied Sector
9. East African Breweries Ltd
10. British American Tobacco Kenya Plc
Commercial & Services Sector
11. WPP Scangroup Plc
12. Nation Media Group Plc
Construction and Allied Sector
13. Bamburi Cement Ltd
Energy and Petroleum Sector
14. KenGen Co. Plc
15. Kenya Power & Lighting Co Ltd
Insurance Sector
16. Britam Holdings Plc
17. Kenya Re Insurance Corporation Ltd
Investment Sector
18. Centum Investment Co Plc
Investment Services Sector
19. Nairobi Securities Exchange Plc
Telecommunication Sector
20. Safaricom Plc