Photo: Asoko Insight
Safaricom’s dominance of the NSE has hit a new peak after the telecommunication firm’s market valuation exceeded 50 percent of the Sh2.22 trillion stock market.
Safaricom’s valuation of Sh1.13 trillion at close of trading Thursday is now 50.7 percent of total investors’ wealth at the Nairobi Securities Exchange (NSE), a factor that is largely attributable to the bear run that has precipitated a sharp drop in the market capitalisation of other listed firms.
Crossing the 50 percent threshold means that Safaricom’s market worth is now more than the combined valuation of all the other 62 listed companies.
Safaricom is still shy of its highest-ever market capitalisation of Sh1.27 trillion achieved in March last year, but the company has avoided 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 gone up by 25 percent or Sh5.70 this year to hit Sh28.25, adding more than Sh228.4 billion to its market valuation at a time when many other companies, including other blue chip counters, are stuck in a price slump.