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Safaricom Reverses Prior Session’s Gains, Drops 3.8% To Ksh 16.60 On Bulk Foreign Supply

BY Soko Directory Team · July 29, 2023 09:07 am

KEY POINTS

BAT was the subsequent top mover at 0.5% of turnover. The cigarette manufacturer sustained its six-session slide by 0.4% to KES 418.50 on foreign selling.

Safaricom reversed the prior session’s gains, dropping 3.8% to KES 16.60 on bulk foreign supply. This was the highest traded volume on the counter in recent memory, with the telco accounting for 98.7% of trading activity.

Local investors accounted for 94.8% of buys on the counter on the day of its dividend book closure.

BAT was the subsequent top mover at 0.5% of turnover. The cigarette manufacturer sustained its six-session slide by 0.4% to KES 418.50 on foreign selling.

Related Content: Safaricom Sweeps The Counters, Accounts For 44% Of All Trading Activities

Equity Group had a relief rally, rebounding 2.3% to KES 40.60 on bullish foreign sentiments.

Conversely, EABL doubled as a leading laggard in the bourse and top movers’ list, slumping 6.7% to KES 153.50 following its dull FY23 results in which its EPS declined 16.9%y/y to KES 12.47.

In addition, the dividend was halved to KES 5.50 (div yield of 3.6%). The brewer attributed the decline in profitability to excise tax increases (excise tax increase and inflation adjustment) – since removed via the Finance Act 2023, inflation on raw materials (sorghum and ethanol supply and prices), rising interest rates (higher finance costs), as well as Kenya currency weakening (for imported raw materials and products).

Related Content: Safaricom Dominates NSE With A Total Turnover Of 61.8%

Centum eased 0.2% to KES 9.00 following an FY23 comprehensive loss of KES 4.9bn. Despite this, the investment firm paid a dividend of KES 0.60 (div yield of 6.7%) from its earned investment income.

WPP Scangroup was the leading gainer of the session, recouping 8.4% to KES 2.96 while Liberty Holdings was the leading loser, plummeting 9.0% to KES 3.64.

Foreign investors turned net sellers, recording net outflows of USD 23.1m. Safaricom led the selling charge with net outflows of USD 23.0m while Equity Group led the buying charge with net inflows of USD 29.2K.

At the same time, the market had a dead cat bounce, as it resumed its slide, retreating 1.9% on Safaricom’s drop. Similarly, the NSE 20 and NSE 25 lost 0.3% and 1.3% respectively. Equity turnover spiked 22-fold to a four-month high of USD 24.7m on increased trading of Safaricom.

Related Content: Safaricom Shareholders Approve Two New Subsidiaries For The Giant Telco

Data from Standard Investment Bank

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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