Genghis Weekly Strategy - 1st July 2019
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 10.5%. The net yield on this dividend payment (after tax deduction) is equivalent to the net yield on the implied 9-year bond (following the gradual downward shift in the yield curve). This offers an attractive entry point for investors who wish to hold the stock in the long run.
- SELL FXD2/2019/5 at 10.40%. The issuance of a longer-dated paper is no longer an ‘if’ conjecture but ‘when’, with the market awaiting the announcement of the July primary bond. As such, we expect pent-up demand in short-tenor papers and investors can offload some of their holdings of FXD2/2019/5 at recommended levels.
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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