Need Shares To Buy This Week? Experts Say Go For StanChart

This week, economic experts from Genghis Capital have issued a BUY recommendation on Standard Chartered Group. From their vantage point, they expect the firm to register record profitability levels.

This coupled with the firm’s industry-leading payout ratio, makes the counter an attractive stock in a competitive operating landscape.

The Standard Chartered Share is currently trading at 159.75 shillings, a bit lower than Friday last week but expected to spike during the day.

At the same time, secondary fixed income market turnover soared by 162% w/w to KES 9.85Bn up from KES 3.76Bn in the previous week.

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The bulk of the trading activity was skewed towards long-dated IFB issues. The highlight of the week was the announcement of the November 2023 Primary Bond Auction.

The auction seeks to raise KES 50Bn earmarked for funding infrastructure projects in the FY 2023/24 budget. The IFB1/2023/6.5 years is an amortized bond whose effective life stands at 4.85 years.

The coupon rate will be market-determined based on the weighted average rate of accepted bids. The auction currently runs from 20th October 2023 to 8th November 2023. The minimum amount has been lowered from KES 100,000 per bond to KES 50,000 per bond.

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The minimum amount required for a competitive bid has been raised to KES 2Mn, while the maximum amount for a non-competitive bid has been raised to KES 50Mn, up from KES 20Mn. We believe the Central Bank of Kenya is keen on shifting the focus away from competitive bidding that piles pressure on the yield curve.

Discount securities recorded a performance rate of 123.4%, down from 180.2% the previous week. The 91-day T-Bill registered an acceptance rate of 91% in the week to raise KES 21.48Bn. Overall, spot market yields tightened by an average of 4bps w/w across all papers.

The average accepted yields on the 91-day, 182-day, and 364-day papers stood at 15.0458%, 15.0763% and 15.3405% respectively.

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