Report
Genghis Capital
Churchill Ogutu ...
  • Gerald Muriuki
  • Grace Ndungu
  • Patrick Mumu

Genghis Weekly Strategy-March 11, 2019

In our third edition of the Weekly Strategy Report, we give our equity trading ideas and highlight our model portfolio which continues to outperform the benchmark index, NSE 20 on all fronts. Our Momentum portfolio performance outpaces the All Share Index, NASI at +20.4% YTD . We also give our equity and fixed income trading ideas where on the latter, we see value in the recently issued 15-year paper. 

Genghis Trading Ideas for the week…
Equities

  • BUY Barclays at current levels (sub KES 12.00). The counter is trading at a dividend yield of 8.5% which is an attractive point for income investors. We also anticipate positive FY18 performance (+8.9% y/y growth in EPS) with results announcement on 11th March 2019.
  • BUY EABL at levels of KES 210.00 and below as the stock offers a potential upside of 18.3% to our target price of KES 284.0 at the current price of KES 210.00. We also expect sustained foreign investor demand on the counter to push the price higher.
  • BUY KCB at sub KES 44 levels as the stock maintains an above average dividend yield (8.0%) and continues to trade below its historical P/B (1.2x vs. 1.6x). Book closure for the final dividend of KES 2.50 is 29th April 2019.
Fixed Income
  • BUY the recently issued fifteen-year bond (FXD1/2019/15) at 12.70% levels. We expect downward correction to 12.50%/12.55% levels as we head to the primary auction of this month’s bond and thus investors to lock in capital appreciation.
11/03/2019 1 EN
Provider
Genghis Capital
Genghis Capital

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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Analysts
Churchill Ogutu

Gerald Muriuki

Grace Ndungu

Patrick Mumu

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