Market News

Banks tipped to lead market growth

Dyer and Blair Investment Bank
Dyer and Blair Investment Bank in Nairobi. FILE PHOTO | NMG 

Companies that benefit from removal of interest rate caps, changes in taxes and are undervalued are likely to be the main winners in the equities market this year, Dyer and Blair Investment Bank says.

The investment bank has advised investors in a research note these are the companies that will also attract foreign investors who are looking at similar economies across the globe.

The bank said the trend of selective growth among equities is likely to continue this year, where only some firms register significant growth while others continue to lag.

“We believe that the case for absolute growth in Kenyan equities will continue to be weak and limited to those that win from changes in regulations — removal of caps, changes in taxes, potential telecom sector regulations, among others — but better relative to peers in similar economies purely on account of foreign investor sentiment,” said Dyer and Blair in their 2020 macroeconomic and market outlook report.