STOCK EXCHANGE INDEX (SEI)
Stock Exchange Index is a measure of relative changes in prices of stocks from one period to another indices.
Nairobi Stock Exchange 20 - share Index (20 companies) (Daily basis) Stanchart Index - From 25 most active companies in a given period (weekly basis) Computation of price index.
Uses of Stock Exchange Index
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To gauge price (wealth movement in the stock market
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To assess overall returns in the market portfolio
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To assess performance of specific portfolio using SEI as a benchmark.
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May be used to predict future stock prices
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Assist in examining and identifying the factors that underlie the price movements.