Index provider FTSE Group has joined efforts with the Nairobi Securities Exchange (NSE) to launch the FTSE NSE Kenya Index Series, a new family of indices tracking the performance of the largest and most widely traded stocks listed on the NSE, Africa's fourth oldest securities exchange.
Nairobi Securities Exchange's chief executive, Peter Mwangi, said the launch is in line with the NSE's strategy to build on its existing suite of products and services in order to meet the evolving needs of its domestic and international investors: "I am convinced that these indices will attract additional capital flows into the domestic Kenyan market and enhance liquidity and market capitalisation," he said. "This is a crucial part of the efforts of the Nairobi Securities Exchange to evolve into a full-service securities exchange which supports trading, clearing and settlement of equities, debt, derivatives and other associated instruments."
The launch of the indices is the result of a recent market consultation with local wealth and fund managers which reflected a growing interest in new domestic investment and diversification opportunities in east Africa. The new index has been designed to enhance and capture the depth of information available on the Kenyan market, but also to be used as a benchmark for ETFs and other index-linked products aimed at global investors seeking exposure to this frontier market.
The FTSE NSE Kenya Index Series is comprised of the FTSE NSE Kenya 25 Index, a tradable index reflecting the performance of the 25 most liquid stocks trading on the NSE; and the FTSE NSE Kenya 15 Index, another tradable index reflecting the performance of the largest 15 stocks trading on the NSE, ranked by full market capitalisation. Both indices will be calculated in Kenyan shillings and published in real time. The indices will be reviewed twice a year in June and December.