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Suspended KenolKobil axed from NSE 20 & NSE 25 Share Index

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The Nairobi Securities Exchange (NSE) has refueled the indices that monitor the bourse’s top companies, striking out KenolKobil who are currently suspended from trading after a takeover deal became imminent.

Kenya Airways (KQ) has flown in to replace KenolKobil on the NSE 25 Share Index, while Total Kenya replaces its fellow petroleum provider on the NSE 20 Share Index.

The changes follow a review of the indices counter at the bourse and took effect on May 16. NSE said the review was in line with global best practice.

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NSE said in a statement, “The market index is reviewed periodically to ensure that it reflects an accurate picture of market performance.”

NSE 20 Share Index is a price weight index at the bourse that monitors the top 20 best performing counters during the period of review.

Likewise, the NSE 25 Share Index is designed to represent the performance of the top 25 listed Kenyan companies. The counter provides investors with a benchmark to measure the performance of the Kenyan stock market.

NSE Suspension

KenolKobil has lost its position on the top indices following suspension, after it became clear that a French firm Rubis Energie were gearing for a takeover.

Despite the successful Ksh36 billion takeover by the French firm, a probe was launched by market regulator Capital Markets Authority (CMA) seeking to understand the role played by some individuals in the process of the deal.

Among those being investigated were KenolKobil chief executive David Ohana as well as executives at Kestrel Capital, among them Charles Field-Marsham, the son-in-law to former powerful cabinet minister, the late Nicholas Biwott.

KenolKobil’s suspension was the third at the bourse in a matter of months, following stops to the trading of shares of fashion dealers Deacons and cement manufacturers ARM Cement.

The three make up the list of firms suspended at the NSE, with the fourth — Atlas — having already been delisted from the exchange.

KenolKobil may however end up being delisted from the NSE altogether, considering that was the plan of its new owners.

[See Also: Former Sports CS Echesa arrested over links to Matungu killings]

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Mike Njoroge
Mike Njorogehttp://www.businesstoday.co.ke
Mike Njoroge is the founder of Daystar Oracle and FootballTriangle. He is passionate about news, religion and sports. He can be reached at: [email protected]
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