East African markets watch
Kenyan markets have been bearish across key value chains amidst an optimistic trading activity in the previous week. To bring more perspective on factors driving this downward trend, CNBC Africa is joined by Caleb Mugendi, Investment Manager at Genghis Capital Asset Management.
Mon, 25 Mar 2024 14:47:38 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Positive financial results in the banking sector have boosted investor confidence
- I&M Holdings and other companies offer attractive dividend yields, driving trading activity
- Market remains undervalued, with analysts recommending income strategies for investors
The Kenyan equities market is showing signs of promise despite foreign investors being net sellers in recent weeks. Analysts are optimistic about the market's performance, with many companies in the banking sector already releasing positive financial results. Last week saw major names like PCB announcing agreements and dividend recommendations, which led to increased investor interest. While some foreign investors may have taken profits, local investors are still finding value in the market. Companies like I&M Holdings have declared attractive dividends, offering dividend yields of over 11%. This has led to a surge in trading activity and a renewed interest in the equities market. The market is currently undervalued, with a price-to-earnings ratio of around 6 times, signaling potential for further growth. Analysts recommend income-generating investment strategies to capitalize on the market's current momentum. Despite the recent sell-off by foreign investors, the overall outlook remains positive, with the market expected to remain buoyant in the coming weeks as investors aim to capitalize on dividend payouts and undervalued stocks.
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