Genghis Capital - Genghis Weekly Strategy-March 18, 2019

Report

Genghis Capital

Churchill Ogutu ...

Gerald Muriuki
Grace Ndungu
Patrick Mumu

Genghis Weekly Strategy-March 18, 2019

Our fourth edition of the Weekly Strategy Report outlines our equity and fixed income trading ideas and highlight our various model portfolios' performance against the benchmark indices, respectively.
Our equities portfolio continues to outperform the benchmark index, NSE 20 on all fronts as the Momentum portfolio performance outpaces the All Share Index, NASI at +20.3% YTD.

Genghis Trading Ideas for the week…
Equities

SELL SAFARICOM at KES 28.00. We expect supply to unlock at this level pushing the price back to sub KES 27.00. Overall, Safaricom remains a good long term stock but the idea is to play the volatility to your advantage.
BUY NIC at KES 37.50. Following the news on a possible reevaluation of the rate cap, most of our favorite banks have already substantially accelerated from last week’s levels but NIC bank seems to be a late bloomer. The counter is still trading at below book value.
BUY EABL at KES 200.00. The stock is still oscillating between KES 200 and KES 205 which remains a great entry point offering substantial upside for long term investors with a target price of KES 248.40 in mind.

Fixed Income

SELL FXD1/2019/15 at 12.50% levels. We expect the recent short-term rally to abate in the coming week, offering investors opportunity to make decent gains.

18/03/2019 1 EN

Provider

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.

See profile

Analysts

Churchill Ogutu

Gerald Muriuki

Grace Ndungu

Patrick Mumu

Other Reports from Genghis Capital

Gerald Muriuki

Gerald Muriuki

Genghis Cross-Asset Weekly Strategy - 8th February 2021

In this week's edition of the Weekly Cross-Asset Strategy Report, we give a recap of the equities, fixed income, currencies and derivatives 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 is ahead of all the benchmark indices including the Nairobi All Share Index (NASI) and Zamara Index. Genghis Trading Ideas for the week…Equities LONG-TERM BUY – EABL on recovery of financial performance Released financial r...

February 8, 2021 February 8, 2021 5 EN

Gerald Muriuki

Gerald Muriuki

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

East African Breweries Ltd (NSE: EABL) announced weak y/y performance as expected but a rebound h/h with net revenue down 3.1% y/y (+53.2% h/h) to KES 44.5Bn. The h/h recovery follows relaxation of pandemic-related restrictions in the July-Dec 2020 period with volumes (-5.0% y/y) and sales almost normalizing to pre-pandemic levels in 2019. In addition to the weak volumes, the business grappled with weaker currency, higher direct costs (gross margin at 43.5% from 47.7% in 1H20) and one-off tax provision which led to a faster drop in Profit Before Tax (PBT) of 45.0% y/y despite the resilient sal...

January 29, 2021 January 29, 2021 4 EN

Gerald Muriuki

Gerald Muriuki

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

KenGen Plc (NSE: KEGN) announced the delayed FY20 audited results. Performance was buoyant as expected with an EPS of KES 2.79 (+132.5% y/y) but normalized (adjusted for the KES 4.6Bn tax credit) EPS growth rate of 16.7% y/y to KES 1.40. The tax credit emanates from capital deduction allowances following completion of the 165MW Olkaria V power plant in November 2019. Electricity revenue backed by the power plant rose 13.4% y/y amidst steady growth in operating expenses (+3.0% y/y). As expected, full year dividend was maintained at the baseline KES 0.30 per share (+20.0% y/y increase) with book...

January 28, 2021 January 28, 2021 4 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Genghis Weekly Strategy-March 18, 2019

Genghis Cross-Asset Weekly Strategy - 8th February 2021

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe