NAIROBI, April 11 (Xinhua) -- The East Africa Securities Exchange Association (EASEA), an umbrella body representing securities exchanges and depositories in the region, announced on Friday that it has launched a regional stock market index.

EASEA said the launch of the East Africa Exchanges (EAE) 20 Share Index marks a significant milestone in the integration and development of the region's capital markets.

"The introduction of the first regional index marks a significant milestone in the growth and deepening of East African capital markets and their economies," said Frank Mwiti, chief executive officer of the Nairobi Securities Exchange, in a statement issued in Nairobi, the capital of Kenya.

The EAE 20 Share Index is a market capitalization-weighted index comprising a cross-section of the top 20 publicly listed companies from multiple sectors across the Nairobi, Tanzania, Uganda and Rwanda stock exchanges.

According to EASEA, the initiative introduces the first-ever regional market index designed to track the performance of East Africa's most prominent listed companies, while enhancing visibility, investor confidence and cross-border investment within the region.

"Collectively, these listed companies represent over 85 percent of the region's equity market universe," EASEA said, adding that the index will monitor price movements and changes in the market capitalization of its constituent firms, offering a transparent benchmark for investors, analysts, and policymakers.

Mwiti said the EAE 20 Share Index is poised to improve market transparency, attract both cross-border and international investment, and provide a reliable benchmark for tracking regional market performance.

To qualify for inclusion in the index, a company's shares must be primarily listed on one of the participating East African securities exchanges. The company must have maintained a continuous listing for at least one year on the respective exchange and should be a recognized blue-chip firm. Enditem

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