Safaricom Value at NSE Bigger Than that of 5 Major Firms Combined

By Soko Directory Team / Published December 15, 2015 | 7:38 am

The capital gain of Safaricom at a time where there is a general decline in the prices at the Nairobi Security Exchange has pushed the capitalization of the largest telecommunication company ahead of the five next largest companies.

Safaricom Company is now worth 657.07 billion shillings. This value is worth five economic giants East African Breweries Limited, Equity Holdings, Kenya Commercial Bank, Cooperative Bank and BAT whose combined value stands at 655.4 billion shillings as by Monday.

At the Nairobi Security Exchange, Safaricom Company is at the moment trading at 16.40 shillings per share after the company gained 16.7 per cent since the commencement of the year.

The net profit of Safaricom Company for the six months ending September this year increased by 23 percent to 18.1 billion shillings. This was a clear projection that this year’s profits are likely to hit 36.5 billion shillings.

According to the report by the Standard Investment Bank (SIB), Safaricom Company is on the right track to beat its incomes per share projected at of 80 cents, based on the growth of EPS in half year and an increase in subscriber numbers that surpassed the expectations of the company.

At the same time, on the Nairobi Security Exchange, the banking segment has been hit by shedding 24.8 per cent or an equivalent of 214 billion shillings in terms of capitalization, to currently stand at 650 billion shillings.

The Kenya Commercial Bank went down by 29.8 per cent this year at a price of 40 shillings, while Equity went down by 20 per cent this year at 40 shillings. Cooperative Bank on the other hand has lost 10 per cent to 18 shillings a share.

According to NSE, The total market capitalization currently stands at Sh2.036 trillion, having fallen by 260 billion shillings since January this year.

This year alone, a total of 12 companies have already announced profit warnings, making this year’s list of companies to have issued such warnings higher than last year and the year 2013.

Article by Juma Fred.

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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