This archive report was first published on 20 May 2020.
On May 29, 2020, the MSCI Frontier Markets Index welcomed two new Kenyan stocks: Co-operative Bank and British American Tobacco. This move is expected to boost the visibility of these companies among global investors.
The MSCI Frontier Markets Index tracks the performance of blue-chip stocks in emerging markets, including Asia, the Middle East, Central and Eastern Europe, and Africa. The index includes 32 countries, with Kenya being one of them.
Co-operative Bank and British American Tobacco join Safaricom, Equity Bank, and Kenya Breweries Limited, which have been outperforming the index in terms of dividend yield, price to equity, and price to book value.
Kenya's stock market has been recovering from the COVID-19 pandemic, with prices rising due to demand from buyers targeting lowly priced counters. The market has also been boosted by the dividend paying season, with investors rushing to gain from 20 counters that have declared returns to shareholders.
According to the Capital Markets Authority report for the first quarter, foreign participation in the Kenyan market remains high, with 60.6% of the market driven by foreign investors seeking higher yields in alternative assets within emerging markets.
