Genghis Weekly Strategy - 18th May 2020
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
- We recommend investors take positions in KCB Group and Equity Group as the prices retreats towards the KES 30.0 – KES 35.00 price levels. Following the steep fall in the financial markets, the current price-to-book multiples and dividend yields (Equity trading cum dividend) present attractive entry points for establishing positions. Additionally, the two banks maintain the best ROE (above 20%) in the listed banking sector. The price levels are also ideal for long-term investors looking to average down their portfolios.
Fixed Income
- BID the Re-opened FXD1/2020/5 at 11.65% - 11.75% levels. We expect appetite in this re-opened paper, in particular from the investors who missed out in the initial primary listing. However, in light of recent fiscal developments, we expect investors to price in slightly higher premium as compared to the primary listing. Overall, our sentiment is that the weighted average accepted rate for FXD1/2020/5 will be 11.65% - 11.75%.
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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