Genghis Issues A BUY For I&M Bank Shares This Week

Buy

Analysts from Genghis Capital have issued a BUY recommendation on I&M Bank. The analysts say they remain positive about the bank’s performance because of its customer centricity that is powered by its innovative edge.

“We see that the bank focused its strategic efforts on the growth of unsecured personal loans coupled with bank-to-mobile transaction fee waivers that increase market uptake. The growth in net loans and advances stood at 27% to 309Bn due to the uptake of risk-based pricing.

From our vantage point, we are positive on I&M bank as an increase in cheaper deposits leads to higher net interest margins,” said Genghis in a statement.

Read Also: The Significance of Stock Market Education And the Impact Of Foreign Investors On The NSE

Equities

Bearish market sentiments prevailed in the equities market, as signaled by the NASI and NSE-20 indices w/w performance.

Total market turnover declined by 64% w/w to KES 490Mn, down from KES 1.35Bn in the previous week. Foreigners’ trading activity decreased by 75.2% to KES 178.63Mn during the week.

By and large, foreign investors were bearish across key blue chips–printing overall net outflows amounting to KES 230.82Mn.

Read Also: Safaricom PLC: The Pulse Of the Kenyan Economy And The Ideal Stock For Retail Investors

Macroeconomic Update

The Energy Petroleum and Regulatory Authority (EPRA) in their latest review announced a reduction of KES 5 in super petrol price, KES 2 in diesel, and KES 4.01 in kerosene in fuel prices for the December/January period.

With this review motorists in Nairobi will now pay KES 212.36 for petrol, KES 201.47 for diesel, and KES 199.05 for kerosene. The reduction is attributable to the overall decline in crude prices globally with urban crude- the benchmark used for the monthly price cycle- prices reaching as low as $69.6 per barrel.

This comes after a slowdown in China’s economic activity and improved production by the US, Brazil, and Guyana leading to an overall oversupply in the global market. This comes even after several OPEC members and their allies vowed to cut supply by 2.2 million barrels in the first quarter of 2024.

However, since the cuts are voluntary, traders believe that the target is not feasible in the short term. The reduction in prices comes as a relief to Kenyans who over the past couple of months have grappled with fuel prices exceeding the KES 200, with prices reaching a peak of KES 217.36 in October forcing the government to cushion consumers against further increases through the use of a subsidy program.

Anticipate a continued decrease in fuel costs next month, as Kenya’s pricing structure keeps pace with global trends. Consequently, the noteworthy reductions in global crude prices will trickle down to the consumer.

Read Also: Absa Launches A Stock Digital Platform To Avail Financing For Retailers And Distributors