Foreign investors turned to profit-taking on key counters at the Nairobi Securities Exchange (NSE) last week, pushing the market to reverse the gains made in the previous week.
Market data shows the non-locals made net sales of Kshs 1.3 billion last week, compared to net buys of Kshs 501 million the previous week, largely due to those cashing in on the SafariCom stock, which had risen above Kshs 30.00 two weeks ago before dropping back to Kshs 28.50 last Friday.
The company closes its books for a Kshs 1.40 a share dividend on July 31, which will likely bring heightened activity on the counter in the next few weeks as investors jostle for a slice of the payout, while others eye capital gains occasioned by the higher demand.
“Profit-taking took center stage mostly by foreign investors concentrating on SafariCom.
“The general market exuded bearishness in close reflection to global equity markets during the week which saw rising COVID-19 cases in countries such as India and U.S, as risks of a second wave of the pandemic rises,” said investment bank Genghis Capital in a weekly market report.
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