Genghis Weekly Strategy - 11th May 2020
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 maintain our BUY recommendation on Absa to income investors, to lock in the 10% dividend yield before the bank announces its books closure date. At current market prices, the bank has the highest cum-dividend yield in the sector. Its peer in the high yield category, SCB, went ex-dividend last week. Absa remains the most attractive dividend stock in our income portfolio with investors set for a cash return in the short term from the expected dividend payment.
Fixed Income
- BUY IFB1/2019/16 at 12.30% - 12.40% levels. We expect the heavy trading in this infrastructure bond to spill over into this week. The upcoming statutory corporate payments and the new CRR cycle signals a slightly dry liquidity environment. The anticipated TAP Sale on this month’s primary bond issue will also dampen fixed-rate bonds’ activity. As such, we see opportunities within the infrastructure bond segment.
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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