· Safaricom share price shoot up to touch an all-time high of Sh34.25 per unit according to market data released by the Nairobi Securities Exchange (NSE).
· After the Central Bank of Kenya ended a waiver on M-Pesa fees for sending up to Sh1,000 the stock witnessed high demand.
Post-Christmas trade saw Safaricom share price shoot up to touch an all-time high of Sh34.25 per unit according to market data released by the Nairobi Securities Exchange (NSE). After the Central Bank of Kenya ended a waiver on M-Pesa fees for sending up to Sh1,000 the stock witnessed high demand. M-Pesa transfer for sending up to Sh1,000 had cost it Sh9 billion in the six months to June, leading to a six per cent drop in net profit to Sh33.07 billion, the first fall in nine years.
The announcement about upcoming new products and general view of growth prospects have induced the confidence of the investors. The stock price remained largely steady around Sh34.10 average price. Analysts said the growing interest on the stock is largely due to a positive sentiment pre-Christmas after the removal of free M-Pesa transactions of up Sh1,000 and telco announcement of expansion into Ethiopia. Safaricom views Ethiopia, as a potential market with a relatively lower uptake of mobile and broadband services, presenting significant growth opportunities. US International Development Finance Corporation has disclosed recently that it has signed a $500 million (Sh54.5 billion) loan deal with Safaricom and its partners for expansion into Ethiopia.
Currently, Safaricom, accounts for about 58.97 per cent of the market wealth of NSE. The rise in its stock prices have pushed up
the NSE’s capitalisation above Sh2.31 trillion. The latest price gain has seen visible rise in the telecoms operator’s market capitalisation to Sh1.36 trillion. At the beginning of 2013, the valuation of the company was around Sh200 billion pointing out that
Safaricom shareholders gained than Sh1.16 trillion on their investment in the past seven years.
