Genghis Weekly Strategy - 14th April 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
- For the defensive investor amidst the global financial volatility, which is expected to persist based on news flow about the COVID-19 pandemic, we recommend NewGold ETF as an asset and portfolio hedge. NewGold ETF closely tracks the movement of price of gold, a safe haven asset. The increasing uncertainty of the depth of the global recession has seen investors accumulate safe assets with gold the best store of value.
- Here is the YTD performance of the NewGold ETF against NSE equities.
Fixed Income
- BUY FXD1/2008/20 at 11.85% levels. The paper has a time to maturity of 8.16 years and currently has an implied yield of 11.91%. The price on the paper is slightly cheaper –vs- at the beginning of the year levels; its yield has edged up 14bps year-to-date. In addition, it has an attractive coupon rate of 13.75% against the coupon rate of 12.0% on comparable FXD2/2013/15 (8.01 years to maturity).
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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