Kenyan equities market sees bearish sentiment
Bearish market sentiments prevailed in the equities market, with total market turnover seeing a decline by 55.5 per cent week over week to KES0.65 billion down from KES1.46 billion in the previous week. On factors that contributed to this performance and what to expect this week on the equities, CNBC Africa is joined by Caleb Mugendi, Investment Manager at Genghis Capital Asset Management from Nairobi, Kenya.
Mon, 06 May 2024 15:00:15 GMT
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AI Generated Summary
- Dividend payouts from major commercial banks like NCBA Group, Cooperative Bank, and APSUB Group led to declines in the equities market indices.
- Global uncertainties surrounding interest rates and local risks such as adverse weather conditions affected investor sentiment in Kenya.
- Foreign investors remained net buyers while domestic investors preferred shorter-dated fixed income securities over medium to longer tenors, indicating market preferences for short-term duration instruments.
The Kenyan equities market saw bearish market sentiments prevailing, with total market turnover declining by 55.5 per cent week over week to KES0.65 billion from KES1.46 billion in the previous week. Factors such as dividend payouts from major commercial banks, global interest rate expectations, and a holiday in the middle of the week contributed to the decline. To provide insights into the market performance and expectations, Caleb Mugendi, Investment Manager at Genghis Capital Asset Management, shared his expertise with CNBC Africa from Nairobi, Kenya. Mugendi highlighted the impact of companies closing their books for dividends, global risks affecting investor confidence, and local challenges like adverse weather conditions on market sentiment. Despite the decline in market turnover, foreign investors remained net buyers, while domestic investors engaged in both selling and buying activities. In the fixed income market, the secondary fixed income market turnover also recorded a decline, with investors showing a preference for shorter-dated fixed income securities over medium to longer tenors. Market participants are expected to continue favoring short-term duration instruments due to the current yield curve dynamics.
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