BlackRock Inc., the largest asset manager globally, perceives a significant investment opportunity in Kenyan stocks. Despite being the poorest performers in 2023, Kenyan stocks have experienced a remarkable turnaround, emerging as the top performers this year.
The Nairobi All-share stock index has surged by an impressive 49% when measured in dollars, bouncing back from a drastic 43% decline in 2023, reaching levels not seen since 2011.
In an interview with Bloomberg, Emily Fletcher, co-manager of the BlackRock Frontiers Investment Trust, attributes this resurgence to shifts in Kenya’s economic policy.
“With a stable political backdrop, improving macroeconomic outlook and a stock market trading on five times PE, perhaps it is time for investors to re-look at the market,” Fletcher was quoted by Bloomberg.
Fletcher highlights the attractiveness of government bonds due to a very appealing real rate, coupled with successful eurobond refinancing. Fletcher suggests that with a stable political environment, an improving macroeconomic outlook, and a stock market trading at a modest five times PE ratio, it may be an opportune moment for investors to reconsider the Kenyan market.
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