On Wednesday, November 11th, Safaricom’s market value was at Kshs 1.27 trillion, one of the highest since early this year – 12th February, to be precise. The share value closed at Kshs 31.80 – the highest price nine months after hitting its highest at Kshs 32.5 on February 12.
From the finance analyst’s viewpoint, foreign investors have taken a lot of interest in Safaricom. On Tuesday, foreign investors bought Safaricom’s shares, amounting to Kshs 267.769 million.
This was 99.7% of the telco’s stock traded that day, and almost five times the shares value they had bought on Monday.
On Monday trading, the Safaricom share price had closed at Kshs 30.75, where the foreign investors had bought shares of Kshs 60.02 million only.
Importantly, there is a high demand for Safaricom’s share by foreign investors despite the telco’s 6% drop in net profits. Also, the finance research analysts had projected a decline in the telco’s market value due to the COVID-19 pandemic. However, Safaricom’s market performance has defied all the projections and remained strong, with a stock value of more than half of the overall investor’s wealth at the Nairobi stock exchange.
Safaricom’s market performance and net profit earnings will continue facing uncertainties due to the effects of the COVID-19 pandemic on the economy.