NSE | AIB Axys February 2023 Stock Picks

    During the month of January, the indicative indices opened the year on a negative with both the NSE-20 and NASI declining 1.12% and 1.22% m/m to close at 1657.22 and 125.91 respectively. Foreign investors remained as net sellers with the selling position increasing by 71.17% to KES 2.86Bn, if the same trend continues the total foreign net selling position for 2023 is likely to surpass the KES 24.04Bn recorded in 2022.

    Equity turnover increased by 74.62% m/m to KES 7.80Bn from KES 4.47Bn in December, while volumes traded shot up 103.54% to KES 332.34Mn. We attribute the increased market activity to focus on blue chips led by banking sector counters. Market capitalization declined 1.23% m/m to KES 1961.63Bn mainly supported by a late rally from SCOM. We expect market activity to continue increasing for the next four months (To remain above KES 9.00Bn/month) owing to the commencement of the FY’22 earnings season with expectations of higher dividends in the banking sector.


    What does February Hold ?

    FY’22 Earnings Season - In the month of January, we expect FY’22 results from BAT which is a perennial dividend-paying counter, however, the increased cost of input raw materials coupled with tough economic times reducing sales revenue are likely to see a reduction and/or slower profit growth. That notwithstanding, we expect the counter to still pay an additional final dividend of KES 50.00 taking the total dividend to KES 55.00.


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    AIB-AXYS Africa Ltd is the fusion of two established companies; AIB Capital Limited and Apex Africa Capital Limited, both with over 25 years of experience in the Securities market. With the solid reputation and experience of the professional teams, we leverage talent and networks to better service businesses and investors looking to capitalize on the African growth story, and its vibrant financial sector.
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