CorporateNews

KQ replaced from NSE benchmark index

Stanbic Holdings has replaced Kenya Airways (KQ) as part of the elite club companies that make up the benchmark Nairobi Securities Exchange 20 share index.

KQ which is being nationalized has also been replaced by Jubilee Holdings as part of the NSE 25 index

The two indices are made up of top-performing companies selected based on a weighted market performance during a review period.

Read also: How local supply chains might take off

“The constituent companies are selected based on a weighted market performance during the period under review,” CMA said in the third quarter of 2020 Soundness report.

The negative effect of the Covid-19 pandemic on companies’ performance has led to lower share prices.

As such investors fearful of trading at a loss have reduced trading at the stocks market dragging down market turnover ratio to 1.56 per cent in the third quarter this year.

CMA benchmark aspires that turnover stays above 8 per cent as a minimum.

The regulator said that despite general market decline there are some golden spots like Absa’s Gold ETF and Stanlib’s real estate investment trust.

In the second week of August 2020, the Absa New Gold ETF was the most liquid counter during the week with a turnover ratio of 9.47%. Additionally, the ILAM Fahari I-REIT became the fourth most liquid counter in the same week with a turnover ratio of 0.25%.

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