The share price for Safaricom at the Nairobi Securities Exchange (NSE) has continued to tumble, hitting a new low since the current CEO Peter Ndegwa took over.
Safaricom declined by 4.75 percent to Ksh28.05 per share, down from Ksh29.45 registered the previous session with shares worth Ksh108 million transacted.
This means that the giant telco has recorded billions in paper loss at the bourse, even as its stocks continue to lose value.
Recently, it was reported that the telco recorded the biggest loss at the bourse, following a massive exodus of foreign investors.
The telco accounted for 71.4 percent or Ksh210 billion of the Ksh294 billion paper loss recorded among the listed companies in the last one month.
This is despite Safaricom’s profit after tax declining slightly by 1.7 percent to Ksh67.4 billion on the impact of Ksh4.66 billion financing costs for the expansion to Ethiopia. Despite the drop in profits, Safaricom announced a Ksh30.04 billion after an earlier interim payout of Ksh25.6 billion, something that was expected to retain investors.
NSE’s market capitalisation dropped to a 20-month low of Ksh2.176 trillion on Friday in the tumble that started on April 13, when the market capitalisation stood at Ksh2.471 trillion.