From L-R: Willis Mbabu, Bryan Mutiga, Lilian Mwikali, Geoffrey Injeni (Director, SFAE), FahimaZein, CFA (Chief Investment Officer, Genesis Kenya Investment Management), Cynthia Mumbi, Brian Gachichio, Eric Theuri, Edel Ochami, Meshack Nyaribo, Edith Nyabicha. Not in Picture: Mercy Musya
Pioneer students of Strathmore University Bachelor of Business Science (BBS) programme outshone their peers from other universities by emerging winners of the CFA Institute Research Challenge (Kenya chapter) held on 28 February 2013. The students will represent Kenya in the Europe/ Middle East/ Africa (EMEA) finals London, UK on 11th and 12th April 2013 and hopefully on 13th April 2013 for the Global Finals in the same city.
The CFA Institute Research Challenge is an annual educational initiative for university students promoting the best practices in equity research through hands-on mentoring and intensive training in company analysis and presentation skills. The challenge offers students the unique opportunity to develop and present an equity research report and compete on a global basis. Students learn from leading industry experts and their mentors and peers from the world's top business schools.
The team, comprising of Brian Gachichio, Bryan Mutiga, Eric Theuri, Edel Ochami, Lilian Mwikali, Cynthia Mumbi, Willis Mbabu, Edith Nyabicha, Mercy Musya and Meshack Nyaribo were mentored by Mr Ferdinand Othieno (Faculty Advisor) and Mr Vimal Parmar, CFA (Industry Mentor).
This year's challenge was to analyze ARM Cement Ltd, a cement mining company listed on the Nairobi Securities Exchange and give a recommendation on whether the stock should be bought, held or sold. 50% of the marks are awarded to the written research paper and 50% to the presentation.
The team conducted an in-depth financial analysis as well as an econometric regression resulting in the creation of the "Twasija Index" - a market-weighted index comprising of five companies: ARM Cement Ltd, Twiga Cement Ltd (Tz), East African Portland Cement Ltd, Tanga Cement Ltd (Tz) and Bamburi Cement Ltd to be used as a benchmark for the performance of ARM Cement Ltd's share price, since a regression with the NSE 20 index did not yield a strong basis for comparison. The team's conclusion was to buy the company's stock as it is trading below the price projected by the team.
Other universities that participated in the challenge include United States International University (USIU), University of Nairobi (UoN) and Kenyatta University (KU).
The Bachelor of Business Science (BBS) programme was launched in June 2010 with 88 students enrolling for the three specialisations in Actuarial Science, Financial Economics and Finance. The BBS programme offers a rigorous, in depth and all round programme unparalleled in the region.
Strathmore's own strength and emphasis on quality and excellence; and the University's active partnership with industry and leading schools ensures the programme's content and delivery reflects industry needs.