This archive report was first published on 2 July 2020.
On July 2, 2020, the Nairobi Securities Exchange (NSE) witnessed a shift in market dynamics as foreign investors turned to profit-taking on key counters.
According to market data, non-locals made net sales of Sh1.3 billion last week, compared to net buys of Sh501 million the previous week. This significant change was largely due to foreign investors cashing in on the Safaricom stock, which had risen above Sh30 two weeks ago before dropping back to Sh28.50 last Friday.
The company's upcoming dividend payout on July 31 is expected to bring heightened activity on the counter in the next few weeks as investors jostle for a slice of the payout, while others eye capital gains occasioned by the higher demand.
“Profit-taking took centre stage mostly by foreign investors concentrating on Safaricom,” said an investment bank report.
The net foreign sales on Safaricom’s stock last week stood at Sh705 million. Other stocks that recorded net foreign sales include Absa (Sh211.4 million), Equity Holdings (Sh135.7 million), BAT Kenya (Sh83.5 million), and EABL (Sh61.2 million).
As a result, the NSE 20 Share Index ended last week 1.6 percent lower, while the NSE All-Share Index was down 4.7 percent. Market capitalisation was down by Sh104.6 billion to close Friday at Sh2.11 trillion, largely due to the retreat in Safaricom’s share price.
