steven maseka 
The Nairobi Securities Exchange Plc (NSE) has notified the investing public that it has launched two new market indices,NSE 10 Share Index (N10) and the NSE Bond Index (NSE -BI).The two indeces will track the performance of the equities market and bonds market respectively.This development follows extensive engagagements with various stakeholders including potential issuers of structured products like the Exchange Traded Funds(ETF).
The N10 Index shall be based on a set of 10 companies,namely-Safaricom Plc,Equity Group Holdings Plc,KCB Group Plc.The Co-operative Bank of Kenya Ltd,Absa Bank Kenya Plc,East African Breweries Plc,NCBA Group Plc,Kenya Electricity Generating Company Plc (KenGen),Kenya Re-Insurance Corporation Ltd,CentumInvestments Co.Plc.
The Constituent companies list will be reviewed semi-annually.One of the key elements of this index is that it will be based on market capitalization float adjusted methodology and will be distributed on a daily basis.The performance of the Index will be available to the market with effect from 1st October 2023.
Commenting on the Indices launch NSE CEO Geoffrey Odindo said;”The development of the new equity index,that will adapt a market capitalization float adjusted methodology and the new Bond Index,will enhance the Investors’ ability to effectively monitor the performance of listed securities on the NSE”
In line with best practices in respect of indices management ,the NSE has reviewed the current NSE 20 Share Index ,replacing WPP Scan Group Plc,Nairobi Securities Exchange Plc(NSE),and Diamond Trust Bank Kenya (DTB) with CIC Insurance Group Plc,Bank of Kigali Group Plc and I&M Holdings Plc respectively,on the list of constituent companies.The changes takes effect immediately
