Global assets manager PineBridge Investments says the bear run at the Nairobi Securities Exchange offers a great investment opportunity.
PineBridge Investments chief executive Jonathan Stichbury says the value of stocks will bounce back this year as well as company earnings, bringing the equity market back to profitability.
TREASURY BILLS RISE
The asset manager said investors turned to the high yielding debt security market, which saw Treasury Bills rise from 8 per cent to over 20 per cent last year even as global trends saw equities fall across the world.
“The equities market will remain volatile in 2016 but it offers a buying opportunity since although values have gone down, the fundamentals remain intact,” said Mr Stichbury on Tuesday.
In 2015, all stocks indices performed dismally, with the NSE 20 share index shedding 21 per cent, while the Nairobi All Share Index lost 10.6 per cent year to date.
A new index introduced in October 2, the NSE 25 share index started off in the red, losing 0.5 per cent in the last quarter of 2015.
The bear run has continued globally in 2016, with the Chinese stock market suspended twice after stocks stumbled.
PineBridge Investment said in Kenya, earnings growth, especially in banking, cement and insurance, may recover this year.