Genghis Weekly Strategy - 18th November 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 including 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 the current dividend yield of 9.3%. 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 IFB4/2019/10 at 12.00% - 12.20%. We expect a premium of circa 30bps from current 10-year yields of circa 11.75% to be priced in in the upcoming primary bond auction. The premium is attributed to the recent repeal of the interest rate cap coupled with recent fiscal developments that point to elevated domestic borrowing.
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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