By PATRICK ALUSHULA
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The share price closed Wednesday trading at Sh31.80 up from Monday’s Sh30.75, pushing its market valuation to Sh1.27 trillion, the highest since February 12 when the share closed at Sh32.5.
The rise in Safaricom share, which accounts for more than half of combined investors’ wealth at the Nairobi bourse, has send the market capitalisation to Sh2.265 trillion — the highest since early May.
Analysts said Wednesday foreign investors’ interest in Safaricom share is on account that the telco’s drop in performance was minimal compared to what investors had expected.
Safaricom #ticker:SCOM share price hit a nine-month high yesterday on increased demand from foreign investors, defying the six per cent drop in half-year net profit as M-Pesa, voice and messaging revenue dipped.
The share price closed Wednesday trading at Sh31.80 up from Monday’s Sh30.75, pushing its market valuation to Sh1.27 trillion, the highest since February 12 when the share closed at Sh32.5.
The rise in Safaricom share, which accounts for more than half of combined investors’ wealth at the Nairobi bourse, has send the market capitalisation to Sh2.265 trillion — the highest since early May.
Analysts said Wednesday foreign investors’ interest in Safaricom share is on account that the telco’s drop in performance was minimal compared to what investors had expected.
“We are seeing a lot of buying from foreign investors. The results were better than what had been expected given the economic hardships in the Covid-19 environment,” said Gerald Muriuki, research analyst at Genghis Capital.
Safaricom on Monday announced a six per cent drop in half-year net profit to Sh33.07 billion — the first time since 2011 for the telco to fail to grow half year earnings.
AIB-AXYS Africa data shows that foreign investors yesterday bought Safaricom shares valued at Sh267.769 million, being nearly five times the Sh60.02 million stocks they purchased on Monday.Safaricom closed yesterday as the most traded share with foreigners commanding 99.7 per cent of the Sh268.67 million that the telco’s counter traded.The telco’s share last traded above the yesterday level during pre-Covid-19 era on February 12 when it closed on Sh32.50.However, the discovery of the first case of Covid-19 in Kenya mid-March saw the share start falling, hitting a low of Sh24.35 during the same month.The telco said on Monday that while zero-rating of fees on transactions of up to Sh1,000 had hurt M-Pesa revenue, the move had helped it win new […]
