Safaricom share drops below Sh13 on profit taking

 

Barclays Bank of Kenya MD Jeremy Awori with Safaricom’s Enterprise Business Unit GM Sylvia Mulinge when the two institutions unveiled a mobile banking service at the Serena Hotel August 1, 2013. The service will enable corporate clients to disburse bulk payments such as salaries, dividend payments, per diem allowances and pension payments to various beneficiaries through the mobile phone. Photo/DIANA NGILA  Nation Media Grou

By GEORGE NGIGI

In Summary

• Shares of Kenya’s leading telecommunications firm traded at an average Sh12.80 Tuesday, down from the previous day’s Sh13.
• Analysts attributed the price drop to supply outstripping demand as the counter traded 28,683,400 shares.

Safaricom’s share price fell below the Sh13 mark on Tuesday after holding firm for over three weeks as foreigners took profit.

Shares of Kenya’s leading telecommunications firm traded at an average Sh12.80 Tuesday, down from the previous day’s Sh13.


Analysts attributed the price drop to supply outstripping demand as the counter traded 28,683,400 shares.

“The turnover was Sh368 million of which foreign sales were Sh356 million against Sh221 million in buys,” said Old Mutual’s research analyst Geoffrey Maina.

Release results

Safaricom is expected to release its full-year results next week. Equity Bank was, however, the day’s top mover with a turnover of Sh394 million.

The banking counter traded 10,113,000 shares at an average price of Sh38.75, down from the previous day Sh39.

Mr Maina said that Equity’s stock has been enjoying speculative momentum since announcing first quarter results. The bank is expected to announce its strategy for entering the telecom industry next week.

Bank chief executive James Mwangi was quoted by London based analysts saying that the lender intends to leverage on the telecom platform to halve agency transaction costs.

The indicative 20-share index rose by 12.24 points to close at 4942.87 in Tuesday’s trading. The total market capitalisation, however, dropped marginally by Sh2 billion to Sh2.105 trillion.