Genghis Weekly Strategy - 16th September 2019
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 index, NSE 20 YTD. Notably, the Momentum portfolio YTD performance is ahead of all the benchmark indices as well as the Zamara Index.
Genghis Trading Ideas for the week…
Equities
For investors seeking to diversify their holding in income generating counters, we recommend a BUY on Barclays Bank of Kenya (BBK) at KES 10.45, representing a dividend yield of 10.2%. BBK has the highest dividend yield in the banking sector with the current dividend yield on the bank being in the range of the yield on risk free short-term treasury bonds. The current price offers an attractive entry point for investors who wish to hold the stock in the long run.
Fixed Income
BUY FXD1/2018/15 & FXD2/2019/15 within 12.50% - 12.60% in this month’s primary bond offering. We do not expect positive uptake for the two longer maturity papers exacerbated by the timing uncertainty regarding debate on Finance Bill 2019. Yields in the interest rate cap environment have eased significantly and a repeal (low probability event) prospect is unsettling investors. As such, we expect aggressive bidding from current 15-year tenor level
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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