Local investors have snapped up Safaricom PLC shares dubbed by Institutional investors at the Nairobi Stock Exchange(NSE). — By Prudence Wanza
On 2nd April 2020, Safaricom shares closed at Sh.28.00, compared to Sh.26.70 the previous day. The foreign stock exchange brokers are Investec and Tellimar, based in Dubai.
Analysts say the foreign-owned traders are repatriating cash through enhanced selling of portfolios, as part of the divestiture initiative to cushion their client.
Among the key foreign investment vehicles are US based Aubark Grayson and Coronation of South Africa. Both countries are hard hit by the Coronavirus pandemic, which the Kenya Government appears to have contained so safe.
The Safaricom counter is on an upward trend, having posted a low of Sh. 23 ten days ago. With its trading results expected this month, the stock will continue to rise. are now pulling out of the Nairobi Stock Exchange(NSE) over the COVID 19 fears.
Hardest hit stocks are Safaricom, Kenya Commercial Bank, Equity Bank and Cooperative Bank. Most of the cash withdrawn from these counters is being invested in the more secure Government bonds as the future of listed stocks begins to look bleak.
A report by the Standard In testament Bank premised on the latest NSE market report says the above counters have lost a combined Sh.10billion in the last quarter.
Safaricom is considered a sure bet by investors…in view of its profitability stretch over the years…it is today the most profitable company in the region.
KCB is a solid financial institution..partly owned by the Government while Equity Bank is an indigenous financial institution that has provided homegrown financial solutions and accommodated the unbanked millions since the exodus from banking multinationals by frustrated Kenyans from 2000.
The NSE future continues to look bleak as the Covid 19 pandemic continues to bite.
