Subscriptions For the 2-year and 15-year Bonds Hit 101 Billion Shillings

The 2-year and 15-year results came within market expectations with the average for the 2-year falling at 10.701 percent while that of the 15-year came in at 12.857 percent.

The subscriptions, according to market analysts from Genghis Capital, caught the market unawares with total subscriptions hitting 101 billion shillings.

The 2-year received bids worth 76 billion shillings but accepted 23.7 billion shillings while the 15-year received bids worth 14.7 billion shillings with 11.8 billion shillings accepted.

“We expect to see increased activity the rest of the week with demand on infrastructure bonds still high from off-shore investors. The local unit also closed higher at 101.55 gaining ground despite our expectations of weakening on the back of oncoming end-month dollar demand,” said analysts from Genghis Capital

Market analysts expect the Central Bank of Kenya (CBK) to come in for a TAP sale from both papers as they try to catch up with the domestic borrowing budget.

A Look at the Equities

Equities traded marginally higher in the previous session compared to Tuesday’s session with shareholders’ wealth only up 0.01 percent albeit on lower turnover.

Foreign investors continue to dominate the market with a sustained overall selling sentiment. In Thursday’s session, investors say that they still expect activity to be on the index counters.

“However, we note there is barely any exuberance in EABL despite expectations of its 1H19 results release tomorrow, Friday 25th January,” stated Genghis Capital.

Investors should anticipate foreign investor dominance in the session with participation still on the selling side of the index counters.

Top 8 Stocks to Watch in Thursday’s Session

If you are looking to buying some shares today, we would advise that you look at KenGen with a recommended price of 8.30 shillings and a target price of 9.84 shillings. The stock is currently trading at 6.74 shillings.

Kenya Re-Insurance Corporation Ltd’s share is currently at 14.00 shillings, the recommended price is 15.50 shillings and the target price is 21.67 shillings.

Liberty Kenya Holding’s share is currently going for 11.60 shillings, the recommended price is at 12.60 shillings and the target price is 16.40 shillings.

You can also buy into the Kenya Commercial Bank (KCB Group) at a recommended price of 41.00 shillings and a target price of 55.99 shillings. The stock is currently going at 40.25 shillings.

Other stocks to watch during the Thursday’s session include the East African Breweries, Jubilee Holdings Ltd, NIC Group and Stanbic Holdings.

A Walk through Key Statistics

The Kenyan shilling remained resilient on Wednesday, gaining traction against both the US Dollar and the Euro. The shilling closed the day at 101.57 to the dollar, gaining 0.06 percent. The local currency ended the day at 115.34 to the Euro, gaining 0.03 percent.

The NASI remained unchanged on Wednesday, closing the session at 145.24 points. The NSE-20, on the other hand, closed the day 0.23 percent high to 2877.31 points.

Have a Look: As 2019 Kicks Off, Here Are The 7 Stocks To Watch