Genghis Weekly Strategy - 20th January 2020
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 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
ACCUMULATE KCB Group as it retreats to the KES 50 price levels. Its current Price to book (1.3x) is most attractive amongst its large peers such as Equity group, Barclays Bank and Standard Chartered Bank, all priced above 1.4x price to book. KCB’s ROE is slightly below Equity Group, the only listed banks with ROE above 20%.
Fixed Income
BUY FXD1/2019/5 at 11.30% - 11,45% levels and FXD1/2019/10 at 12.30% - 12.40% levels. We expect yields on the dual-tranche January primary bond to be priced at a slight premium (from current levels) on increased domestic borrowing pressure. The historical 3-year average on the 5-year and 10-year yields has been 11.84% and 12.61%, respectively.
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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