Report

Genghis Capital

Gerald Muriuki

Genghis Weekly Strategy - 23rd 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 recommend investors take positions in KCB Group and Equity Group as the prices retreat below the KES 40.0 price level. Following the steep fall in the financial markets, the current price-to-book multiples and dividend yields (both cum dividend) present attractive entry points for establishing positions. Additionally, the two banks maintain the best ROE (above 20%) in the listed banking sector. This strategy is also useful in lowering the cost base (averaging down) of the portfolio for long term value investors.

Fixed Income

BUY FXD1/2019/5 at 10.97% - 11.00% levels. In the current volatile environment due to the COVID-19 pandemic, shorter maturity papers and higher-paying coupons will be attractive. FXD1/2019/5 is relatively well priced against comparable maturities and offers attractive entry points.

23/03/2020 4 EN

Underlyings

EQUITY BANK

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KE0000000554 Nairobi Securities Exchange Kenya

KCB Group Ltd

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KE0000000315 Nairobi Securities Exchange Kenya

Provider

Genghis Capital

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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Analysts

Gerald Muriuki

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Genghis Weekly Strategy - 23rd March 2020

Equities

Fixed Income

Equity Metals Corporation (TSXV: EQTY / OTCQB: EQMEF) – Drilling Expands Resources by at Least 30%

Equity Metals Corporation (TSXV: EQTY / OTCQB: EQMEF) – Reaches Milestone of 1 Moz Gold Equivalent Resource

Stocks Should Rally If Tomorrow’s Inflation Report Shows This

Genghis Cross-Asset Weekly Strategy - 8th February 2021

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

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