East African markets watch

The Kenyan equities market is showing signs of promise despite foreign investors being net sellers in recent weeks. Analysts are optimistic about the market's performance, with many companies in the banking sector already releasing positive financial results. Last week saw major names like PCB announcing agreements and dividend recommendations, which led to increased investor interest. While some foreign investors may have taken profits, local investors are still finding value in the market. Companies like I&M Holdings have declared attractive dividends, offering dividend yields of over 11%. This has led to a surge in trading activity and a renewed interest in the equities market. The market is currently undervalued, with a price-to-earnings ratio of around 6 times, signaling potential for further growth. Analysts recommend income-generating investment strategies to capitalize on the market's current momentum. Despite the recent sell-off by foreign investors, the overall outlook remains positive, with the market expected to remain buoyant in the coming weeks as investors aim to capitalize on dividend payouts and undervalued stocks.