NAIROBI, June 27 – The Nairobi Stock Exchange has announced some changes in both the 20 Share and the All Share Indices.
Nairobi Stock Exchange (NSE) Chairman Jimnah Mbaru said the changes are in line with international best practice and the quarterly review of the Exchange\’s indices.
In a statement, Mbaru said NSE’s Board of Directors has passed that in the 20 share index Equity Bank would replace Diamond Trust Bank in the Finance and Investment Sector, East African Cables would take up the place of Sameer Limited while Athi River Mining would replace Total Kenya in the Industrial and Allied Sector.
The statement further indicates that Safaricom Limited has replaced TPS Serena in the Commercial and Services Sector and has further been included in the All Share Index.
The changes take effect from the 1st of next month.
Mbaru observed that though the regulations governing the NSE 20 Share Index require a company to have been trading for a minimum of one year prior to inclusion in the index, the NSE Board made an exception for Safaricom Limited, in light of the significant impact the Safaricom share has occasioned on market capitalisation and trading activity at the bourse.
"Safaricom Limited’s inclusion will enhance the technical and market reflection accuracy of the NSE 20 Share Index." Mbaru said.
He said the changes were endorsed by the NSE Board after due regard was paid to factors of market capitalisation, turnover, shares traded and the liquidity of the respective counters.