In August’23, our model portfolio (-3.43%) continued to outperform the NASI index (-5.93%) while falling below the NSE-20 (-2.35%). However, our model portfolio has outperformed the NASI index on a YTD basis. On a YTD, the NSE-20 lost 8.11% while NASI index lost 22.15% compared to our model portfolio which has lost 10.61%.
The portfolio performance was lifted by m/m gains recorded by NCBA and Diamond Trust Bank. However huge declines by counters KCB, Safaricom, Jubilee, I&M and ABSA weighed down on further gains in the overall portfolio performance. We observed foreigners changing to net buyers following an improvement in the buying position in some trading sessions in Q2’23.We expect another month of mixed performance largely driven by investors aligning themselves to dividend paying counters before book closures and foreigners remaining as net sellers. However, trading will remain largely concentrated in the blue-chip counters – SCOM, the Banking sector, and other select counters driven by the hunt for dividends.
