This archive report was first published on 2 September 2019.
Published on September 2, 2019, Business Daily reported that Safaricom's market valuation had reached a milestone, surpassing the combined value of all 62 listed companies at the Nairobi Securities Exchange (NSE).
The telco's valuation of Sh. 1.13 trillion at the close of trading on Thursday last week accounted for 50.7% of the total investors' wealth at the NSE, a significant factor in the bear run that has led to a sharp drop in the market capitalization of other listed firms.
As a result, Safaricom's market worth now exceeds the combined valuation of all other listed companies, a testament to the company's dominance in the market.
Despite being shy of its highest-ever market capitalization of Sh. 1.27 trillion achieved in March last year, Safaricom has managed to avoid the deep erosion of value that other companies have suffered, pulling down the benchmark NSE 20-Share Index to a 10-year low.
The telco's share price has increased by 25% or Sh. 5.70 this year, adding more than Sh. 228.4 billion to its market valuation at a time when many other companies, including other blue-chip counters, are stuck in a price slump.
The firm's huge dominance in the market has led to a sharp contrast in the performance of key indicators, where the NSE All-Share Index and market capitalization have gained 5.1% and 5.7% respectively since January, but the NSE 20-Share Index is down 13% to a 10-year low of 2,467 points.
