Khusoko – East African Markets
    Facebook Twitter Instagram
    Khusoko – East African MarketsKhusoko – East African Markets
    • NEWS
    • ECONOMY
      • BANKING & FINANCE
      • COMPANY
      • MARKETS
    • INDUSTRY
      • AGRICULTURE & ENVIRONMENT
      • HEALTH & WELLNESS
      • PROPERTY
        • RETAIL
      • TECHNOLOGY
        • ELECTRONICS
    • ENTREPRENEURSHIP
      • ENTREPRENEURS
      • PEOPLE
      • PERSONAL FINANCE
    • SPORTS
    • COMMENTARY
    • ARTS & CULTURE
      • BOOKS
      • ENTERTAINMENT
      • FAMILY & RELATIONSHIPS
      • FASHION & STYLE
      • FOOD & DRINK
      • TRAVEL & LEISURE
    Khusoko – East African Markets
    MARKETS

    Kenyan Equity Market is on Positive Track on Declining Pricing to Earnings Ratio, Cytonn

    KhusokoBy Khusoko2019-10-27Updated:2019-10-28No Comments2 Mins Read
    A derivative is an instrument that derives value from its underlying asset(s) which can be bonds, shares, currencies, or market indices.
    Image I Courtesy NSE

    The Kenyan equity market is on a positive track for investors due to the declining Price to Earnings Ratio (P/E) to below its historical average.

    Analysts from Cytonn Investments say the market is currently trading at a price to earnings ratio (P/E) of 11.4x, 14.3% below the historical average of 13.3x, and a dividend yield of 6.2%, above the historical average of 3.9%.

    “With the market trading at valuations below the historical average, we believe there is value in the market,” they note.

    As a result, they expect increased market activity, and possibly increased inflows from foreign investors, as they take advantage of the attractive valuations, to support the positive performance.

    “The current P/E valuation of 11.4x is 17.4% above the most recent trough valuation of 9.7x experienced in the first week of February 2017, and 37.2% above the previous trough valuation of 8.3x experienced in December 2011,” analysts at Cytonn Investments report.

    The Kenyan stock market closed in the green territory last week attributed to gains in the Banking sector with NCBA Group, Equity Group, and KCB Group of 5.2%, 5.1%, and 2.0%, respectively. The counters are showing high activity following the President’s rejection of the Finance Bill 2019 proposing the removal of the rate caps.

    The NSE All-Share Index (NASI), NSE 20 and NSE 25 gained by 1.2%, 1.2%, and 1.5%, respectively, taking their Year To Date (YTD) performance to gains/losses of 6.9%, (12.1%) and 1.5%, for NASI, NSE 20 and NSE 25, respectively.

    Foreign investors accounted for 64.8% of the week’s total activity, compared to 50.5% in the previous week. Foreign investors were net sellers for the third consecutive week, logging net outflows of KSh 266.4Mn
    compared to a net outflow of Ksh 239.9Mn in the previous week.

    Cytonn Investments Kenya equities market Kenyan stocks
    Khusoko

    Multimedia platform providing analysis of business & financial news in East Africa.

    Related Posts

    Kenya’s Central Bank Keeps Lending Rate Steady at 9.50%

    2023-05-29

    Finance Bill 2023: Kenya’s Most Extensive in The Recent Past

    2023-05-28

    IMF Staff, Kenya Reach Agreement for Kshs 56.58 Bn

    2023-05-23

    Leave A Reply Cancel Reply

    Our Language is Flirty
    https://www.facebook.com/flirtynailsparlour/
    MORE TOP STORIES
    • Oppo Launches Find N Flip its Foldable Smartphone in Kenya
    • Kenya’s Central Bank Keeps Lending Rate Steady at 9.50%
    • Investing in Healthcare: M-PESA Foundation’s KSh 46 Mn Investment in Medical Camps
    • Do You Feel Sudden Heavy Emotions? Here’s How to Manage It
    • CAK Approves Hope Advancement’s 51pct Acquisition of Smep Microfinance Bank
    • Facebook
    • Twitter
    • LinkedIn
    Facebook Twitter LinkedIn
    • ABOUT US – KHUSOKO
    • PRIVACY POLICY
    • KHUSOKO STANDARDS GUIDE
    © 2023 Khusoko. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.