Safaricom drags NSE market value below Sh2trn

NSE market capitalisation slipped below the Sh2 trillion mark Wednesday. FILE

By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com


IN SUMMARY
The slide was largely due to a Sh8 billion decline in the market valuation of the Nairobi Securities Exchange (NSE’s) biggest company Safaricom.
Total investor wealth at the bourse stood at Sh1.99 trillion, down from the Sh2.02 trillion on Tuesday.
Safaricom Telco, under pressure from profit taking this week, saw its share price fall below Sh12 as it shed 1.7 per cent to close at Sh11.85, giving the company a capitalisation of Sh474.5 billion.

Safaricom drags NSE market value below Sh2trn
NSE market capitalisation slipped below the Sh2 trillion mark Wednesday, as continued profit taking and foreign investor sales took toll on the large counters.

The slide was largely due to a Sh8 billion decline in the market valuation of the Nairobi Securities Exchange (NSE’s) biggest company Safaricom.

Total investor wealth at the bourse stood at Sh1.99 trillion, down from the Sh2.02 trillion on Tuesday, although equity turnover rose to Sh1 billion from Sh860 million in Monday’s trading.

Safaricom Telco, under pressure from profit taking this week, saw its share price fall below Sh12 as it shed 1.7 per cent to close at Sh11.85, giving the company a capitalisation of Sh474.5 billion.

“The market continued retreating, easing for the third straight session in the week on weaker demand and general selling pressure from foreign investors,” said Standard Investment Bank in its daily market report.

READ: NSE cools off as investors cash in on peak counters

The manufacturing sector also registered big declines Wednesday; with BOC Gases the day’s leading losing stock as it shed 7.5 per cent to close the day at Sh175. Carbacid shed seven per cent to close at Sh39.50, while BAT was down 5.2 per cent to Sh544.

The banking sector, which has provided most of the momentum in the past three weeks that has driven the capitalisation to a new high, was largely flat with some key stocks registering declines.

Both KCB and Equity saw their share prices fall yesterday by 75 cents each to close at Sh32 and Sh46.25.

CFC Stanbic, which touched a one-year trading high of Sh100 on Tuesday, retreated by five per cent to close at Sh92.50.

The sector had 11 million shares traded representing 33 per cent of the day’s traded volume, with Equity Bank the sectors biggest mover with 3.9 million shares traded.

Diamond Trust Bank accounted for the day’s biggest share of total equity turnover by a single stock, moving shares worth Sh271 billion (27.1 per cent) at Sh223 a share on closing average.

“Strategic investors in banking stock continued to solidify their positions ahead of the 2013 financial year performance results,” said Genghis Capital in a market note released Wednesday.

Car & General up 22 per cent to Sh45 was the day’s biggest gainer, with investors factoring in an announcement of a one-for-five bonus and a final dividend of 80 cents per share.

“Car & General leapt 22.4 per cent as investors seemed rather thrilled by the bonus share issue. Its EPS growth reported of 18 per cent was also decent but not entirely a big surprise.”