Profit takers pile pressure on Safaricom shares

Safaricom’s share price came under pressure from profit takers two days after announcing impressive full -financial results. The counter had reached a one year high of Sh7.55 in Wednesday’s trading session following a 39.8 per cent rise in profit after tax to Sh17.5 billion, but eased to Sh7.25 on account of profit taking.

In the financial year, the mobile phone services provider’s turnover rose by 16 per cent to Sh124.3 billion. “We expect the stock to remain largely below Sh7.30 levels for the rest of the trading,” NIC Securities equity analyst said in an update on the stock.

Analysts say the counter is expected to continue attracting mixed investor interest following the impressive performance. “Relatively same levels of demand and supply are expected as new investors seek positions given the positive outlook depicted by management, while some of the current holders take quick profits given the new highs in nearly five years,” Analysts at Afrika Investment Bank said.

The firm’s management have painted a good outlook for this year.