Measuring Market Performance of the Nairobi Stock Exchange
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Date
1992-06Author
Simiyu, Wellington M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study set out to construct an alternative index for the
Nairobi Stock Exchange. The need for the study emanated from the
weaknesses of the current NSE 17-Share daily Index. The index
excludes most of the active companies quoted on the exchange in
the last six years. Among those ignored are such active stocks as
Barclays Bank and the Standard Chartered Bank. The index also
gives equal weight to all companies irrespective of the number
of shares quoted. In addition, on a stock market there is
usually need for alternative performance measures to give
interested parties a wide range of choice in order to meet their
diverse needs.
The index arrived at in this study was a 23-share index
made up of the most actively traded stocks in 1991. It had the
period of January-June, 1975 as the base period and the base
value was set at 100 in this period. The index is weighted by the
number of shares outstanding in the base period. The prices used
were the geometric means of the bid and offer prices. The index
was computed using a laspeyres type formula. The weights were
adjusted for chances in capitalization for example through bonus,
rights issues or new issues.
Citation
Simiyu MW,June 1992;Measuring Market Performance Of The Nairobi Stock Exchange.Publisher
University of Nairobi Faculty of commerce