Genghis Weekly Strategy - 2nd March 2020
In this week's edition of the Weekly Strategy Report, we give a recap of the equities and fixed income markets' performance over the past week and our trading ideas for the coming week.
Our Momentum, Income and Value equities portfolios continue to outperform the benchmark NSE 20 index. Performance of the Momentum and Income portfolios was ahead of all the benchmark indices including the Nairobi All Share Index (NASI).
Genghis Trading Ideas for the week…
Equities
We urge caution on taking a position in EABL during the early part of the week after the counter went ex-dividend (KES 3.00 per share interim dividend) last Friday, 28th February, with selling pressure expected to mount on the stock. Additionally, both the local and global equity markets have been under immense selling pressure over the last week occasioned by rising concerns of a higher than initially expected impact of the spread of the Coronavirus. We believe this selling pressure will sustain into the week and hence urge investors to take a wait-and-see approach in anticipation of lower and much more attractive entry points in subsequent weeks.
Fixed Income
BUY FXD1/2019/5 at 11.10% - 11.15% levels. We are constructive on FXD1/2019/5 as demand is saturated at the shorter end of the yield curve. Compared to FXD2/2019/5, the paper has a superior coupon which should be attractive to income-hungry investors. Against the backdrop of its semi-annual coupon payment last week, it has an attractive entry point.
Genghis Capital is an innovative and customer focused Investment Bank licensed by the Capital Markets Authority (CMA). Founded in 2008, Genghis is one of the leading investment banks in Kenya. Since its establishment, Genghis has achieved tremendous growth to offer a well-diversified portfolio of financial services that includes:
- i. Securities(Equity/Debt) Trading
- ii. Research
- iii. Wealth Management services
- iv. Investment Advisory & Management via the GenCap Unit Trusts
- v. Corporate Finance & Transaction Advisory services
The Kenyan Capital Markets continue to develop in size, scope and sophistication. With this is an increasing demand for more specialized and personalized brokerage service and we at Genghis Capital are glad to be able to offer you this service. Our strength lies in ensuring our clients are up to speed with developments at the stock market and the economy. Research and technology remains our competitive and comparative advantage hence Experience, Expertise and Professionalism are some of the qualities you can expect from our team.
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