Genghis Cross-Asset Weekly Strategy - 28th December 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 is ahead of all the benchmark indices including the Nairobi All Share Index (NASI) and Zamara Index.
Genghis Trading Ideas for the week…
Equities
ACCUMULATE KENGEN on recent price weakness (LONG-TERM)
Market price has weakened closer to 52-week low (on concerns of cash flow constraints due to KPLC) despite recent highlighted 2020 financial results (unaudited) indicating record-level net profit of KES 10.5Bn (partly due to KES 1.9Bn tax credit). Normalized, this is growth of 7.5% - decent for a year most blue chips are issuing profit warnings.
Fixed Income
BUY IFB1/2020/11 at current levels
We expect interest on the infrastructure bond segment to spillover to the week as the year closes to an end. We see attractive entry levels on the IFB1/2020/11 and the paper will also be buoyed by its relative liquidity in the market.
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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