Safaricom Plc (NSE: SCOM)

Updated: 5 May 2022

What is Safaricom Plc

Safaricom Plc is a Kenyan-based telecommunications company. I was formerly known as Safaricom Limited. The Company provides integrated telecommunication services, including mobile and fixed voice, short messaging service (SMS), data, Internet and M-PESA, a service to send and receive money or pay for goods and services through a mobile phone.

In addition, it also provides financial services and enterprise solutions to businesses and the public sector.

Safaricom Plc offers a range of devices, such as mobile handsets, mobile broadband modems, routers, tablets, notebooks and laptop computers. It also offers a range of voice pricing plans on prepaid and post-paid options bundled with short message service (SMS) and/or data services.

The Company offers high-speed data connectivity for access to email, Internet and corporate connectivity through fixed and mobile broadband. The Company distributes its products and services through a dealership network of approximately 2,700 outlets.

Safaricom

The history of Safaricom Plc started in 1997 and it was the first company in Kenya to possess 3G Internet technology with recent success of 4G / LTE connectivity currently in all major Kenyan cities.

In March 2021, Safaricom Plc became the second network operator in Africa after Vodacom to launch a live 5G network, initially available in Nairobi, Kisumu, Kakamega and Kisi.

Today, Safaricom Plc has a diversified portfolio in more sectors of the value chain and renders the following services:

  • Voice services which include national and international roaming services, offering mobile handsets, mobile broadband modems, routers, tablets and notebooks.
  • Converged business solutions include fixed voice service for corporate and Small and Medium-sized Enterprises (SMEs), mobile solutions and fixed data for homes and businesses using fixed lease lines, and Internet solutions for enterprises and hosted services, such as cloud hosting, domains and security services. The Company also offers bill payment, bulk payments and dividend payments.

Safaricom Plc's equity stocks are for sale online on the Nairobi Securities Exchange (NSE) under the stock symbol SCOM.

Safaricom Plc has its headquarters at Safaricom House in Nairobi, Kenya.

Safaricom Plc forms part of the Communications Services Industry and the Telecommunications Sector.

Safaricom Plc Stock Performance

The current price for Safaricom Plc stocks is 37.55 Kenyan Shilling (KES). The company has a total market capitalisation of 1.5T KES with a P/E ratio of 21.96 and earnings per share of 1.71 KES. A total of 40.1B shares are outstanding.

With an increase of earnings per share and consistent profits over a period, investors who want to buy or sell Safaricom Plc stocks can be assured of lucrative dividends and earnings in times to come.

According to an analysis on the live chart of Safaricom Plc, analysts forecast further improved performance with market share growing as trading volumes increase.

Highlights of Safaricom Plc in 2021

Safaricom Plc started the year with a share price of 34.25 KES, and it has gained 9.64% in value on its price valuation, ranking 12th on the NSE where year-to-date performance is concerned.

Safaricom Plc is currently the no 1 most-traded stock on the NSE and it has experienced a total trading volume of more than 380 million shares, which were finalized in 14,731 deals and were valued at a total of 15.9 billion KES over three months, with an average of 6.03 shares in each trading session.

The highest volume shares traded on one single day was 22.2 million.

Safaricom - How To Trade

How to buy Safaricom Plc stocks – Step by Step

The stock market is one of the most attractive financial markets that sees millions of retail investors and traders' participation daily. To buy, sell or trade Safaricom Plc stocks, traders and investors can follow a few simple steps:

  1. Find the share that you want to buy, in this case, “SCOM”.
  2. Select a forex broker that offers access to the Nairobi Securities Exchange (NSE).
  3. Review the broker's trading conditions, fees, deposit and withdrawal methods, trading platform, customer support, regulation, and other components to ensure that they are aligned with your trading plan.
  4. Open a live trading account with the broker by completing the online application form and providing the necessary documentation to verify the trading account.
  5. You are now ready to make your first share purchase through the broker.
  6. You can further start to build and diversify your portfolio by buying more shares.

FAQs

The Nairobi Securities Exchange (NSE), was established in 1954 as Nairobi Stock Exchange, and is the leading stock exchange in East Africa. It offers world class trading facilities for both its local and foreign investors looking to gain exposure to the country’s rising economy.

The exchange is based in Nairobi, the capital of Kenya, which has one of the fastest-growing economies in Sub-Saharan Africa. The NSE operates under the jurisdiction of the Capital Markets Authority of Kenya. It is governed by a board of 11 directors.

In 2008, the NSE launched the NSE All-Share Index (NASI). The NASI is a market capitalization-weighted index comprising all listed securities, effectively, the benchmark index for the Kenyan stock market.

In 2011, in conjunction with FTSE International, the NSE introduced the FTSE NSE Kenya 15 and FTSE NSE Kenya 25 indices which are designed for the creation of index tracking funds and derivative products. The NSE 25 Share Index measures the top 25 companies.

Safaricom Plc trades its equity on the Nairobi Securities Exchange (NSE) under the stock symbol SCOM.

Safaricom Plc is a Kenyan-based telecommunications company that provides integrated telecommunication services, including mobile and fixed voice, short messaging service (SMS), data, Internet and M-PESA, a service to send and receive money or pay for goods and services through a mobile phone.

Safaricom Plc forms part of the Communications Services Industry and the Telecommunications Sector.

At the time of writing, the current price of Safaricom Plc shares was 37.55 KES.

Yes, Safaricom Plc’s forecast indicates further growth and improvement in the second half of 2021, with investors expecting lucrative dividends and returns with increased financial performance.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .