Banking counters are about to release their results led by Equity Bank which posted an 8 percent rise in net profits to September from Sh14.6 billion last year to sh15.8 billion.
However on Tuesday, Equity turnover improved only marginally by 9.8 percent to Sh220 million ($2.2m), as local participation increased from 30.8 percent to 45.2 percent.
This is an indication that good profits will not necessarily inspire a buy on stocks.
Apex says that hypothetically one’s portfolio should be adjusted by exiting NIC, Centum, and EABL whilst buying TPSE (Serena), Barclays Bank and Britam.
Last month, EABL wrote off Sh15.3 billion loan advanced to its Tanzanian subsidiary while Centum-owned renewable energy company Akiira Geothermal Sh1.2 billion Naivasha well failed to meet production capacity.
Kenya Airways counters will be projected against the success of its direct US flights against increased competition from South Africa and Ethiopia Airlines as they move their chess pieces.
Kenya Power which has issued a profit warning is set to release their results this month which is likely to cut its stock valuations while Mumias Sugar will also release results this month with negative sentiments on its counter.
Last month saw the Kenyan currency weaken and the likely impact of United States sanctions on Iraq may hit the currency on higher oil prices and lower dollar receipts from selling tea to the Persian Republic.