Genghis Cross-Asset Weekly Strategy - 13th July 2020
In this week's edition of the Weekly Cross-Asset Strategy Report, we give a recap of the equities, fixed income, currencies and derivatives 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) and Zamara Index.
Genghis Trading Ideas for the week…
Equities
BUY Absa Bank Kenya Plc as it races below KES 10 levels.
As at the latest closing price of KES 9.50, the bank has an admirable dividend yield of 11.6%. We have seen the bank trade in the vicinity of multi-year low of KES 9.10 last week, presenting good accumulation levels.
Fixed Income
BUY FXD1/2020/5 between 10.60% - 10.65% levels
Yields have declined 112bps in the secondary market on the paper since this paper was issued in May. The paper has been re-opened as one of this month’s primary bond issue but we expect the high liquidity to push yields lower further. We see opportunities in the secondary market at our recommended levels.
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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