Kenya's NSE in major restructure of 20-share index

THE NAIROBI Stock Exchange has dropped six companies from its 20 share index and replaced them with companies that will reflect changes in market fundamentals since May 2003 when the index was last reviewed.

NIC Bank, BOC Gases, Unilever, Kakuzi, Uchumi Supermarkets, and Williamson Tea have all been dropped. They have been replaced by ICDC Investments, KenGen, Mumias Sugar, Rea Vipingo, Cooper Motors Corporation (CMC), and Express Ltd. The newly constituted index becomes operational effective August 1.

NSE chairman Mr Jimnah Mbaru said that the new companies have been picked in line with the exchange guidelines on requirements for inclusion in the index. Plans are also underway to introduce an NSE-All share index whose calculation will be based on share price and volume movements of all listed companies.

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