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

1. To gauge price (wealth movement in the stock market

2. To assess overall returns in the market portfolio

3. To assess performance of specific portfolio using SEI as a benchmark.

4. May be used to predict future stock prices

5. Assist in examining and identifying the factors that underlie the price movements.