Foreign Investors offload stocks to reverse previous week’s gains

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Foreign investors registered increased profit-taking activities at the Nairobi Securities Exchange(NSE) last week. The offloading of stock was most prominent on key counters with the results seeing the market capitalisation drop by Sh104.6 billion to land at Sh2.11 trillion.

According to market data, non-local investors pushed their net sales to Sh1.3 billion as per the closing of last week. This was an increase compared to the previous week’s Sh501 million made from share sales from foreigners. 

The cashing in was prominent after investors dumped stock on key counter Safaricom after its drop back to Sh28.50 on last Friday. The telco’s share price had earlier risen above Sh30 two weeks before.

“Profit-taking took centre stage mostly by foreign investors concentrating on Safaricom. The general market exuded bearishness in close reflection to global equity markets during the week which saw rising Covid-19 cases in countries such as India and the US,” said Genghis Capital’s weekly report.

Safaricom stocks last week further saw net foreign sales totalling Sh705 million to accompany its Sh1.40 a share dividend payout.

Other key counters to also record high new foreign sales within the last week also include ABSA(Sh211.4 million), BAT Kenya(Sh83.5 million), EABL(Sh61.2 million) and Equity(Sh135.7 million).

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About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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