Safaricom has gone under a major price explosion over the last few weeks, touching new records while the rest of the market has been seriously hit by the ongoing bear run. The company’s share price at the Nairobi Securities Exchange spiked after it announced payment of a special dividend of Sh 0.68 per share and the annual dividend of 0.76 per share, totalling Sh1.44 a share (Sh 57 Billion). Books closed on Friday and payment will be executed on 1st December 2016.
During Monday’s trading session, NSE Market Capitalization shrank by Sh63.71Billion mainly as a result of a 7.77% drop in Safaricom prices which were trading at an average of Sh 18.40 from Friday’s 19.95, of the total Sh 63.7 Billion decline, Safaricom accounted for Sh62.10 Billion.
The recent demand was mainly driven by foreign and institutional investors who wanted to get a piece of the record Sh 57 Billion dividend payment. In August alone, foreigners bought shares worth Sh2.3billion. However, investors expect Safaricom’s share price to remain stable in the coming weeks as a result of the looming half year results expected on 3rd November 2016.
Source: Kenyan wallstreet