Recently the activity at the Nairobi Stock Exchange has raised querries on the effectiveness of the NSE index in clearly and accurately capturing the market activity without overhyping the same.
The Index which in the last few months has surpassed the 6000 marked to scale new highs thanks to the new Initial Public Offerings (IPOs) is to be reviewed and analysts are bracing for a better and a a more reflective index.
For more information read the excerpt below from the Standard :
NSE plan for new Index
Excerpts from www.eastandard.net
The experts eventually hired to study the Nairobi Stock Exchange index have been asked to consider new ways to track market activity.
As a result, the NSE could get new indicators to track performance on its three market segments. All of these will be tried out using computer models and historical information to show how they would behave under different economic conditions before they are introduced on the bourse.
http://www.eastandard.net/hm_news/news.php?articleid=1143964015