Yes safaricom price cannot appreciate everyday indefinately. There will be price correction after foreign insitutional investors finish their buying spree. It might touch 10 bob before this happens.
This correction may be momentary because if November expected HY safaricom result is excellent as expected, the bull run will resume past 10 bob on or before early 2014.

@The deal of Namibia,

Be aware fundamentals is not everything. What drives prices is consistent profit growth not necessarily PE.

ARM with a PE of 29.08 is apprciating at the moment faster than Bamburi with a PE of 17.58.

The big boy EABL has a PE of 38.55, what is driving its price ?

What is making KCB grow faster than Equity ?
It is the HY results. KCB performed better than Equity. But look at the PEs. KCB at 11.44 and equity at 10.51 ? If Equity performs better in Q3 VS KCB, you will see a steep rise in equity, but if KCB outperforms equity, the gap between KCB VS Equity will be wider irrspective of the fact that equity may still have lower PE which means it is cheaper.

Greeting dear @Muganda,

I beg to differ. Foreigners influence has always been there especially on blue chips. The counters look expensive to locals but cheap for foreigners who are mainly long termers, not short term as the locals.
Also foreigners include foreign managers, and institutional inventors not only high net worth individuals. I am privy of the fact that Databank of Ghana that owns epack are buying Safaricom up to 10 bob , KCB up to 48.50 bob and EABL up to 350 bob before they exit.
The locals (Kenya) are minority stake holders in NSE blue chips from my best of my knowledge. You only have a few rich kenyans that control high percentage of this stocks and they rarely sale as they prefer to have influence in these companies as board appointments etc. It is the Nwananchi retailers that provide supply to institutional inventors.

After all those that bought SAfaricom at 5.00 bob during IPO in 2006 are happy to sale at 9.00 bob. The foreigners will buy hold it for same 4 years and exit at 20+. Who is better off ?

That would be the day we achieve vision 2030...YOu mean safaricom can hit a Market capitalization of Sh.800B in 4 yrs ...I think thats just being too optimistic.

Safaricom to be debt free in 2015

http://www.businessdaily.../-/vgwyj8z/-/index.html


Safaricom Sees Rising Dividend as Debt Falls

http://www.businessdaily...6/-/ilvhrv/-/index.html


Question ? What do you expect in the next 2 to 4 years ?

@MrYoung people only say lets throw away fundamentals during bubbles...

I can see mpesa bank is about to become a reality with this new CBK guidelines. I hope in future they'll list the mpesa firm instead of trading under the parent SCOM. This way we can follow mpesa bank as a bank. If it happens it'll be better holding the mpesa bank shares than the telco shares.

http://www.businessdaily.../-/14bgjuqz/-/index.html

Those Mpesa flows... M-Shwari and M-Benki will be interesting going forward.

Safaricom raises cost of calls to EA countries - http://www.nation.co.ke/...6/-/duyb0z/-/index.html



This is sad indeed for EAC. Telco is now a necessity not a luxury for these economies... Bure kabisa.

They need to learn from the EU on how it harmonized roaming tariff across the eurozone.