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Safaricom shares rally over rosy outlook

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Kenyan shares rose on Friday led by mobile services firm Safaricom.

The Nairobi Securities Exchange’s main NSE-20 Share Index added 14.26 points to close at 5,093.00 points, driven higher by Safaricom, which added 2.7% to Ksh17.20.

Analysts said Safaricom’s shares were buoyed by a favourable outlook for its annual performance and anticipation of solid results due to be announced in early May. The firm’s M-Pesa money transfer service and its data business are expected to help increase earnings, analysts said.

“It’s just investors seeing the value of the company,” said Ms Agnes Achieng, research analyst at Sterling Investment Bank. “If they post good results, there will be much demand for the stock.”

On the foreign exchange market, the shilling closed at 93.40/50 to the dollar, the same as Thursday’s close and near levels last seen in November 2011. Traders said local currency liquidity was tight with companies preparing to make tax payments but the shilling could weaken after the payments.
(Reuters)

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