Report

Genghis Capital

Gerald Muriuki

Genghis Cross-Asset Weekly Strategy - 9th November 2020

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

KCB and Equity breach key BUY price level – KES 35
Fear due to expected 3Q20 performance is putting pressure on the two banks which despite posting the largest increase in loan provisions in 1H20 maintained their lead in ROE, offering long term investors an entry opportunity at this price level.

Fixed Income

BUY FXD1/2010/15 at 10.10% - 10.20% levels
We see an entry opportunity at the short-end of the yield curve as we approach the tail end of the calendar year. This is further compounded by the dual-tranche longer-dated issues in this month’s primary bond sale. Therefore, investors can reduce their duration on their portfolios by considering FXD1/2010/15 paper.

09/11/2020 5 EN

Underlying

KCB Group Ltd

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KE0000000315 Nairobi Securities Exchange Kenya

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.

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Analysts

Gerald Muriuki

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Genghis Cross-Asset Weekly Strategy - 9th November 2020

Equities

Fixed Income

Kenya Banks: Sector Q3 21 PBT jumps 68% yoy, and outlook for Q4 is positive too

Kenya banks: Lucrative SME potential undercut by low yields and asset quality

Kenya Commercial Bank: 9M 21 – impressive results and management's 2023 strategy is now within reach

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

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