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Kenya: Press Releases: NSE Launches FTSE NSE Kenya Index Series |
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Tuesday, 08 November 2011 |
Nairobi, 8 November 2011 --- The Nairobi Securities Exchange initiated its partnership with FTSE International launch of the FTSE NSE Kenya Index Series. The index series consists of:
- The FTSE NSE Kenya 25 Index: This tradable index reflects the performance of the 25 most liquid stocks trading on the Nairobi Securities Exchange.
- The FTSE NSE Kenya 15 Index: This tradable index reflects the performance of the largest 15 stocks, ranked by full market capitalisation trading on the Nairobi Securities Exchange.
These equity indices have been developed in partnership with FTSE International and in consultation with local asset owners and fund managers. The FTSE NSE Kenya Index Series is built to FTSE’s renowned standards of index design, which emphasize transparency, tradability and strong governance, with index data available across a range of global vendor platforms. They reflect the growing interest in new domestic investment and diversification opportunities in Kenya. The new indices will run concurrently with the NSE 20 Share and NSE All Share Indices. They will act as a gauge by which our investors can measure the performance of their portfolios. They also act as a foundation for the development of index related products such as Exchange Traded Funds (ETFs). The launch of these new indices is a milestone for the NSE.
It is the first such initiative of its kind in East and Central Africa, and the third in Africa after JSE Ltd., South Africa, and Casablanca Stock Exchange, Morocco.
The NSE endeavors to build on its existing suite of products and services in order to meet the evolving needs of our domestic and international investors. The partnership with FTSE International illustrates the NSE’s commitment to meeting this need. The indices will attract additional capital flows into the domestic market and enhance liquidity and market capitalization. It is a crucial part of the efforts of the NSE to evolve into a full service securities exchange which supports trading, clearing and settlement of equities, debt, derivatives and other associated instruments. In this regard, the NSE intends to expand the family of FTSE NSE Kenya Index Series by offering a treasury bond index, very shortly.
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