Is Safaricom's share price undervalued?

Your daily dose of financial news

November 12, 2024

Hello 👋 

It's Brian from The Kenyan Wall Street.

On our top stories today :

▶️ Safaricom CEO explains why the telco's share price is lower than expected.

▶️ Is Safaricom open to partnering with satellite internet players like Starlink?

▶️ The number of listed Kenyan companies in the Morgan Stanley Capital International (MSCI) global index increases to seven.

📈 “Our Share Price is Undervalued by 50%” -Safaricom CEO

The stock market has performed well this year but one of its greatest listed companies, Safaricom, has been a concern for shareholders. The CEO Peter Ndegwa explains the situation :

🔴 In August 2021, the telco's share price was at its peak of KSh 45.25 but has since slipped below KSh 20.

🔴 The crunch of foreign investors at the bourse, long-term liquidity pressures were some of the challenges the CEO pointed out.

Ndegwa says that analysts have another view of Safaricom's share price. Read what he said about this…

📡 Safaricom Welcomes Partnership with Starlink, Other Satellite Internet Firms

Safaricom CEO Peter Ndegwa does not believe satellite internet would replace fixed internet networks in Kenya. Starlink and other potential players will just be ‘complementary' solutions for rural and remote areas.

🟢 Ndegwa told The Kenyan Wall Street that they are open to work with any satellite internet provider including Starlink.

🔴 Starlink's urban expansion in Kenya hit a temporary snag. It halted new subscriptions in six regions because their bandwidth in those areas were overstretched by demand.

📉 Morgan Stanley Adds Kenya Power, Two More Firms to Key Global Index

More Kenyan companies listed in the Nairobi Securities Exchange (NSE) will receive visibility to global investors after the MSCI Frontier Markets Small Cap Index added three more companies in its list.

They include :

🔵 Kenya Power

🔵 Carbacid Investments

🔵 Bamburi Cement

The total number of listed Kenyan companies in the MSCI index has grown to seven. The three companies were feted by inclusion into this list due to their impressive stock surges over the recent months.

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Have a great evening 😊