TRADING

NSE replaces KenolKobil counter ahead of delisting

In Summary

• Move follows approval by KenolKobil board and market regulators Capital Markets Authority for French firm Rubis Energie to take over the oil marketer.

• At least 68 firms are listed at the exchange, with 23 of them not listed at NSE 20 or 25.

NSE chief executive Geoffrey Odundo monitors the daily tradings at the NSE headquarter on August 22 / ENOS TEC
NSE chief executive Geoffrey Odundo monitors the daily tradings at the NSE headquarter on August 22 / ENOS TEC

Kenya Airways and Total Kenya have replaced KenolKobil at its top 20 and 25 Nairobi Securities Exchange counters.

The move follows approval by KenolKobil board and market regulators Capital Markets Authority for French firm Rubis Energie to take over the oil marketer.

The replacement is effective from May 16, 2019. Following the NSE review, Kenya Airways will now exit the NSE 25 to join the top 20 best-performing counters at the NSE while Total Kenya will join the top 25 best performing counters for the first time.

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

At least 68 firms are listed at the exchange, with 23 of them not listed at NSE 20 or 25.

At NSE 20, the constituent companies are selected based on market capitalization, shares traded, deals/liquidity and turnover during the period under review weighed in the ratio of 4:3:2:1 respectively.

The company must have at least 20 per cent of its shares quoted at the NSE and a minimum market capitalization of Sh20 million.

On the other hand, the NSE 25 share index is designed to represent the performance of the top 25 Kenyan companies listed on the NSE providing investors with a comprehensive and complementary benchmark to measure the performance of Kenya

The firms must have their primary listing on the exchange, have at least 20 per cent of its shares quoted on the NSE, be continuously quoted for at least 1 year and have a minimum market capitalization of Sh1 billion.