Boycotting 411: #notmywords...... Safaricom stock this month has slid amid selling pressure from foreign investors, pushing it below the Sh12 level and a four-month low. The stock that hit an all-time high of Sh13.40, Tuesday closed at Sh11.95, its lowest level since March 25. The share has lost 6.2 per cent since the beginning of July when it was trading at Sh12.75. Standard Investment Bank analyst Eric Musau said investors exiting the stock now may have come in at a lower price. The stock gained 66 per cent over the past one year and its large number of investors makes it a prime candidate for profit taking. “It is because of foreign selloffs primarily, and even though there has been local buying, it has not been sufficient to cover the supply from foreign investors,” said Mr Musau. The company sold 10 billion shares to the public at a price of Sh5 a piece in 2008, attracting local and foreign investors who placed bids worth Sh231 billion, causing an oversubscription of 360 per cent. The stock had held below its Sh5 IPO price between September 2010 and December 2012, locking in many investors who did not wish to take a hit on the initial investment.... Pinchme
Posted on: Thu, 24 Jul 2014 08:33:09 +0000
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