40,000 investors sell Safaricom shares in a year of price rally
Safaricom shareholders Erustus Irungu and Elizabeth Njambi Mwangi fill in registration forms during the First Annual General meeting at the Moi International Sports Centre in Kasarani, Nairobi, on August 19, 2009. Photo | FILE | FREDERICK ONYANGO
What you need to know:
- All other categories of investors also reduced their holdings in the review period save for foreign institutional investors who increased their stake to 5.1 billion shares from five billion shares.
- The stock’s performance has been linked to the company’s increased profitability in recent years, a move that has seen it raise its dividend payout.
- While the small investors continue to sell their holdings, high net worth investors are increasing their stake in the telco in what is seen as a long-term investment strategy.
Nearly 40,000 Kenyan retail investors have sold their Safaricom shares in the past one year, taking advantage of the telco’s stock rally to cash in a total of Sh3 billion.
Regulatory filings show that the number of Safaricom shares held by local investors dropped to two billion in May from 2.2 billion in the same month last year.
All other categories of investors also reduced their holdings in the review period save for foreign institutional investors, who increased their stake to 5.1 billion shares from five billion shares.
Local, small investors, who mostly bought into the telco during its 2008 initial public offering (IPO), however, made the most aggressive exits from the telco.
CLICK HERE to read the full story.
