@BusinessDaily

Zamara launches NSE equity index

1 weeks ago, 19:00

By: James Ngunjiri

Zamara, a pension fund administrator, has launched an equity index that will track listed stocks at the Nairobi Securities Exchange (NSE), enabling players to conduct a better analysis of their performance.

The Zamara Equity Index is a total return index that takes into account both the price changes and dividend income of the constituent stocks. It was developed in partnership with S&P Dow Jones — the world’s largest provider of financial market indices.

Zamara chief executive Sundeep Raichura on Wednesday said the index would address the issue of availability of shares or liquidity.

Only shares with a free float of more than Sh5 billion will be included in the index calculation, he said.

“The launch of the Zamara Equity Index is an example of an excellent partnership, bringing together Zamara with the NSE as the data provider and S&P Dow Jones who will be calculating this index for us independently,” he said.

The index will also address the issue of thin trading or ability to trade, in that only stocks with an average daily value traded over the last six months of more than Sh5 million will be included in the index.

Mr Raichura said no stock in the index would exceed 20 per cent of total market capitalisation, thus precluding the concentration risk of one stock.

The case in point is Safaricom which is hovering around 45 per cent and 50 per cent of market capitalisation.

“If we want asset managers to track an index, we cannot have them track an index in which Safaricom is at 50 per cent because that will be a big risk. So, this index actually caps risks exposure to any one stock at 20 per cent,” he said.

NSE chief executive Geoffrey Odundo said the index would improve the quality of investment monitoring in the industry and enable industry players to conduct meaningful analysis on performance.

“Investors need the indices to be used as performance indicators of the broad market and for an indication of the market direction and investors’ sentiment on the corporate sector and economy,” he said.


Read More


Category: business opinion news lifestyle corporate

Suggested

3 hours ago, 12:13
@AfricaNews - By: Africanews
Nigeria Air seeks strategic partner to invest $300m | Africanews

Decades of neglect and lack of investment have left Nigeria with low-quality infrastructure seen as a hurdle to prosperity. The government has said that upgrading it will require private investment. ...

Category: africa topnews news africa_business business
7 hours ago, 07:57
@DailyNation - By: Brian Ngugi
BAT half-year profit rises 3.39pc to Sh2bn

Sales rose due to incremental pricing and distribution expansion initiatives. ...

Category: topnews news business
3 hours ago, 12:40
@StandardMedia - By: Bbc
Fashion firm burns items worth billions to prevent them being sold cheaply

Burberry, the upmarket British fashion label, destroyed unsold clothes, accessories and perfume worth Sh 3 billion (£28.6m) last year to protect brand ...

Category: business news
1 hour ago
@CapitalFMNews - By: Ken Macharia
78-year-old works alongside her great-grandsons at a Nairobi audio shop

NAIROBI, Kenya, Jul 20 - Like most senior citizens in Kenya, Cecelia Wangari, guesstimates her exact age. Her national identity card reads 1940 as the Kenya breaking news | Kenya news today | ...

Category: business
Now
@CapitalFMNews - By: Njoki Kihiu
Contaminated or not? Kenyans divided about domestic sugar consumption

NAIROBI, Kenya, Jul, 20 - As the final report by the Joint Committee probing the proliferation of contraband sugar in the country is due on Tuesday, Kenya breaking news | Kenya news today | ...

Category: business
7 hours ago, 08:28
@BusinessDaily - By: Dr Mukuhi Ng’ang’ ...
DR NG'ANG'A: Why am I Losing Weight?

Cancer can cause generalised symptoms. ...

Category: business opinion news markets lifestyle economy corporate

@BusinessDaily

Zamara launches NSE equity index

1 weeks ago, 19:00

By: James Ngunjiri

Zamara, a pension fund administrator, has launched an equity index that will track listed stocks at the Nairobi Securities Exchange (NSE), enabling players to conduct a better analysis of their performance.

The Zamara Equity Index is a total return index that takes into account both the price changes and dividend income of the constituent stocks. It was developed in partnership with S&P Dow Jones — the world’s largest provider of financial market indices.

Zamara chief executive Sundeep Raichura on Wednesday said the index would address the issue of availability of shares or liquidity.

Only shares with a free float of more than Sh5 billion will be included in the index calculation, he said.

“The launch of the Zamara Equity Index is an example of an excellent partnership, bringing together Zamara with the NSE as the data provider and S&P Dow Jones who will be calculating this index for us independently,” he said.

The index will also address the issue of thin trading or ability to trade, in that only stocks with an average daily value traded over the last six months of more than Sh5 million will be included in the index.

Mr Raichura said no stock in the index would exceed 20 per cent of total market capitalisation, thus precluding the concentration risk of one stock.

The case in point is Safaricom which is hovering around 45 per cent and 50 per cent of market capitalisation.

“If we want asset managers to track an index, we cannot have them track an index in which Safaricom is at 50 per cent because that will be a big risk. So, this index actually caps risks exposure to any one stock at 20 per cent,” he said.

NSE chief executive Geoffrey Odundo said the index would improve the quality of investment monitoring in the industry and enable industry players to conduct meaningful analysis on performance.

“Investors need the indices to be used as performance indicators of the broad market and for an indication of the market direction and investors’ sentiment on the corporate sector and economy,” he said.


Read More

Category: business opinion news lifestyle corporate

Suggested

3 hours ago, 12:13
@AfricaNews - By: Africanews
Nigeria Air seeks strategic partner to invest $300m | Africanews

Decades of neglect and lack of investment have left Nigeria with low-quality infrastructure seen as a hurdle to prosperity. The government has said that upgrading it will require private investment. ...

Category: africa topnews news africa_business business
7 hours ago, 07:57
@DailyNation - By: Brian Ngugi
BAT half-year profit rises 3.39pc to Sh2bn

Sales rose due to incremental pricing and distribution expansion initiatives. ...

Category: topnews news business
3 hours ago, 12:40
@StandardMedia - By: Bbc
Fashion firm burns items worth billions to prevent them being sold cheaply

Burberry, the upmarket British fashion label, destroyed unsold clothes, accessories and perfume worth Sh 3 billion (£28.6m) last year to protect brand ...

Category: business news
1 hour ago
@CapitalFMNews - By: Ken Macharia
78-year-old works alongside her great-grandsons at a Nairobi audio shop

NAIROBI, Kenya, Jul 20 - Like most senior citizens in Kenya, Cecelia Wangari, guesstimates her exact age. Her national identity card reads 1940 as the Kenya breaking news | Kenya news today | ...

Category: business
Now
@CapitalFMNews - By: Njoki Kihiu
Contaminated or not? Kenyans divided about domestic sugar consumption

NAIROBI, Kenya, Jul, 20 - As the final report by the Joint Committee probing the proliferation of contraband sugar in the country is due on Tuesday, Kenya breaking news | Kenya news today | ...

Category: business
7 hours ago, 08:28
@BusinessDaily - By: Dr Mukuhi Ng’ang’ ...
DR NG'ANG'A: Why am I Losing Weight?

Cancer can cause generalised symptoms. ...

Category: business opinion news markets lifestyle economy corporate
Our App