Sharp Daily
No Result
View All Result
Wednesday, July 30, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Safaricom’s Influence Declines as Foreign Investors Reshape NSE Trends

David Musau by David Musau
August 8, 2023
in Investments
Reading Time: 2 mins read
Nairobi Securities Exchange (NSE)

In the second quarter of this year, Safaricom Plc’s stronghold over the Nairobi Securities Exchange (NSE) wealth has shown a noticeable decline. Its representation in the total market capitalization dropped to 40.6 percent, signifying a shift from its prior dominance. While Safaricom retains its position as the most valuable company, its share of the NSE’s total valuation has been steadily decreasing. This decline has been concurrent with the dwindling share price, which has seen a 30.2 percent reduction year-to-date, closing at Kes 16.8 last Friday, compared to the initial Kes 24.05 at the beginning of January.

Read more: Retail Investors Capitalize on Safaricom’s Falling Share Price and Foreign Investors’ Selling Spree

Throughout the reviewed quarter, Safaricom’s market value averaged Kes 675.7 billion, while the overall average total market capitalization stood at Kes 1.6 trillion. This reflects the larger trend of the NSE’s performance, which has been under pressure due to foreign investors engaging in sell-offs. The decreasing value of Safaricom’s shares can be attributed to the actions of these foreign investors, who have been progressively reducing their stake in the company, resulting in a downward trajectory for the stock.

The leading stocks on the NSE, aside from Safaricom, include Equity Group, EABL, KCB Group, Co-op Bank Kenya, Absa Bank Kenya, NCBA Group, Standard Chartered Bank Kenya, BAT Kenya, and Stanbic Holdings. When combined, these top 10 stocks hold an average market capitalization of Kes 1.3 trillion, collectively accounting for 84.2 percent of the NSE’s total wealth. Interestingly, Safaricom also claimed the title of the most traded counter during the quarter, boasting an average turnover of Kes 2.2 billion. This surpassed the second most traded stock, Equity Group, with a turnover exceeding it by more than two-fold. The persistent departure of foreign investors from the market is anticipated to continue influencing the valuation of NSE-listed companies. This remains the case even though the fundamental aspects of the firms are deemed solid by some analysts, who perceive the current pricing trends as irrational.

RELATEDPOSTS

NSE deserves more attention from young investors

May 29, 2025

Investing in Kenya’s equity market: 2025 opportunities and trends

April 28, 2025

Read more: Nairobi Securities Exchange (NSE)-Listed Firms Urged to Embrace Sustainable Practices for Enhanced Competitiveness

Analyzing the situation, experts in the investment docket have noted that since pricing predominantly hinges on market dynamics rather than company-specific fundamentals, the disinterest and subsequent sell-offs by foreign investors are expected to perpetuate a widespread devaluation of prices. The exit of foreign investors has been associated with the shift towards defensive portfolio strategies that prioritize asset classes within developed and top-tier emerging markets. This shift further fuels the downward trend in NSE-listed companies’ valuations.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

Soaring Sugar Prices in Kenya Strain Households Amidst Milling Industry Woes

Next Post

UNESCO Report Emphasizes Balanced Tech Use in Education Amid Governance Shortcomings

David Musau

David Musau

Related Posts

Analysis

Transferring Your Retirement Benefits Between Pension Schemes in Kenya

July 23, 2025
Investments

Invest in stability: introducing the Cytonn USD money market fund

July 18, 2025
Analysis

Park your money where it grows: Why more Kenyans are turning to Cytonn Money Market Fund

July 16, 2025
Analysis

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025
Analysis

Lessons from the Kuramo-TransCentury fallout

July 3, 2025
Analysis

Kenya’s CIS market: Q1′ 2025 shows a surge, setting the stage for future expansion.

June 26, 2025

LATEST STORIES

Shri Krishana Overseas lists on NSE

July 25, 2025

Why young professionals should care about pensions

July 23, 2025

How Kenya can reinforce fiscal rules to prevent recurrent budget overruns

July 23, 2025
commercial illustrator

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025

Transferring Your Retirement Benefits Between Pension Schemes in Kenya

July 23, 2025

Invest in stability: introducing the Cytonn USD money market fund

July 18, 2025

The Importance of Asset Diversification on Kenyan Pension Funds

July 18, 2025

Park your money where it grows: Why more Kenyans are turning to Cytonn Money Market Fund

July 16, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024