As the effects of COVID-19 bite harder on the global capital markets, local investors at the NSE are shunning unpredictable penny stocks due to shaky fundamentals and prefer instead more defensive stocks.
Safaricom is top on the list with banks following distantly on the preference list in spite of the expected slump in H2 results.
Below are the recommended suggestions on fundamentally feasible stocks that investors may want to add to their portfolios as compiled by Market Cap Trainers analysts;
|NO.||Company Name||Suggested Buy Price (KES)|
|2.||KCB Group Plc||34.00|
|3.||Equity Group Holdings||31.80|
|4.||Centum Investment Company||23.00|
|6.||Stanlib Fahari i-REIT||5.50|
|7.||Jubilee Insurance Holdings||229.00|
|8.||Bank of Kigali||16.70|
|9.||Coperative Bank of Kenya||10.00|
|10.||Britam Insurance Holdings||6.50|
The Safaricom share movement has a huge bearing on the overall market performance given that it accounts for 49 percent of the NSE market value, which grows to 79.8 percent when banking stocks are included.
The biggest beneficiaries of the banking stocks rally include pension funds, wealthy individuals and foreign institutional investors who hold stakes worth billions of shillings.