Markets Post Mixed Performance As Safaricom Investors Set To Get Ksh 0.55 Per Share

By Standard Investment Bank / Published February 22, 2024 | 6:27 pm

The market displayed a mixed performance today, with benchmark indices reflecting varied movements. The NASI, N10, and NSE 25 showed gains of 0.5%, 1.2%, and 0.9%, respectively, while the NSE 20 experienced a slight dip of 0.3%.

Equity turnover saw a notable increase, reaching USD 2.6 million, marking an impressive 83.8% surge. Foreign investors took center stage, driving market activity with a participation level of 71.5%, up from 47.1% in the previous session.

Safaricom emerged as the standout performer of the day, contributing to approximately 68.7% of overall activity. The stock maintained relative stability, holding steady at KES 13.40.

Banking stocks dominated the list of top movers, with Equity Group leading the pack with a 5.3% gain to KES 40.85. KCB Group followed suit with a 0.5% increase to KES 20.15, while ABSA experienced a 2.0% decline to KES 12.20. I&M remained unchanged at KES 17.50.

KenGen recorded a turnover of KES 2.7 million, with its stock price holding firm at KES 2.00. Williamson led the top gainers with a 7.1% rally to KES 225.00, while Eaagads faced a 7.1% decline, closing as the leading laggard at KES 13.00.

Foreign investors continued to exhibit bearish sentiment, resulting in net outflows of USD 533.1K. Notably, Safaricom led the selling charge, while KCB Group took the lead in buying activity.

In a separate development, Safaricom’s board announced an interim dividend of KES 0.55 per ordinary share for the financial year 2023/2024 (FY24 cycle). This marks the fourth consecutive year of announcing an interim dividend in the company’s fourth quarter, with books closing on 31st March 2024.

For context, a KES 0.45 dividend was declared on 11th February 2021 for the 1H21. Subsequently, 1H22 and 1H23 saw interim dividends of KES 0.64 and KES 0.58 announced on 25th February 2022 and 28th February 2023, respectively.

The interim dividend is set to be payable to shareholders on the register of members as of the book closure date on 15th March 2024, with the payment scheduled for on or about 31st March 2024. The declared interim dividend reflects a 5.2% year-on-year decrease compared to the prior year’s level of KES 0.58. Currently, the counter is trading at a dividend yield of 9.0%.