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More gloom for Safaricom investors on bourse

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The price of Safaricom shares continued its downward trajectory for the third day running Friday closing the day at Ksh 24.75, a drop of 1.98% from Thursday’s average price of Ksh 25.25.

The telco was the biggest mover at the Nairobi Securities Exchange with investors selling a total of 12,327,800 shares followed by Kenya Commercial Bank (KCB) with 888,800 shares at a price of 41.00 per share.

Safaricom’s shares, which have been on an upward trajectory took a hit on Wednesday a day after Nasa leader Raila Odinga claimed it facilitated the rigging of the August 8 presidential election by transmitting the results to a server in France with connivance of French company, O.T Morpho.

Safaricom has denied the claims, saying all results it transmitted are available locally contrary to Raila’s position that they were never rerouted back. Raila hit back saying CEO Bob Collymore had not directly answered the question he had raised.

Its shares traded at Ksh 25.75 down from Tuesday’s price of Ksh26. A total of 6.92 million shares were moved during Wednesday’s trading.

On Thursday, investors moved a total of 4.73 million shares. The share price had hit a 52-week high of Ksh 27.25, set on August 29 as the company appeared to have shaken off election-related jitters.

Over the last three days, the telco giant’s share price has cumulatively shed off Ksh 1.00.

ALSO SEE: Safaricom share price drops after Raila attack

ARM was the biggest gainer at the bourse with investors buying a total of 3.43 million shares at Ksh 13.95, a rise of 9.41% from Thursday’s price of Ksh 12.75.

The company on Thursday announced it will be transferring its shares to three non-cement making former subsidiaries, ARM Minerals and Chemicals, ARM Energy and Mavuno Fertilizer, after selling them to Swiss industrial firm Omya and Pinner Heights of Mauritius early this month in a transaction whose value was put at least Ksh 5.4 billion.

ARC Cement Ltd, as the company is now known, will concentrate on the cement business.

 

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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