Safaricom Market Value Surges to Over KSh 905 Billion as Shareholders Reap Big
Safaricom PLC shareholders witnessed a remarkable windfall on Tuesday, June 10, as the telco’s market value surged by over KSh 50 billion in a single trading day. The company’s stock price peaked at KSh 23.15 before settling at KSh 22.60, bolstered by strong investor demand.
The impressive rally pushed Safaricom’s market capitalisation to an astounding KSh 905 billion by the close of trading, making it one of the top gainers on the Nairobi Securities Exchange (NSE).
Market analysts attributed the uptick to the ongoing cum-dividend period, where buyers of the stock are still entitled to upcoming dividend payouts. This typically attracts high-volume trading as investors seek to benefit from the dividends.
On the day, the NSE recorded 2,116 deals, with a trading volume of 34.74 million shares and a turnover of KSh 684.14 million. Safaricom contributed significantly to the positive sentiment that led to 28 gainers being recorded during the session.
Longhorn Publishers (LKL) led the gainers with a 9.92% rise in share price. It was followed by Olympia Capital Holdings (OCH) at 9.42%, East African Portland Cement (PORT) at 8.77%, Standard Group (SGL) at 6.23%, and Safaricom (SCOM), rounding off the top five with a 6.10% gain.
Conversely, ex-dividend adjustments saw several stocks decline. Car and General (CGEN) dropped by 7.05%, Jubilee Holdings (JUB) fell 6.17%, and BK Group (BKG) declined 5.74%. Other notable losers included Kenya Power (KPLC) and ScanGroup (SCAN), which dipped by 4.82% and 4.46% respectively.
Earlier, it was reported that the Central Depository and Settlement Corporation (CDSC) had immobilised 16 billion Safaricom shares previously held in physical certificates. This brought Safaricom’s electronically tradable shares at the NSE to 40 billion, from the earlier 24 billion.
CDSC CEO Jesse Kagoma stated that the immobilisation aligns with international best practices, enhancing liquidity, security, and trading efficiency. The move also aims to eliminate risks such as forgery and delays in share transfers. Investors still holding physical certificates have been urged to convert them into electronic form through their brokers.
Safaricom’s bullish performance underscores its dominant position in the market and investor confidence in its long-term growth trajectory.
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Safaricom Market Value Surges to Over KSh 905 Billion as Shareholders Reap Big