Safaricom Plc stocks fell by 1% after the bell rang Wednesday to close at Ksh.13.8 per share.
Data shows volume traded was 504,600. It opened the day at Ksh.14 per share.
The telco has, however, witnessed an uptick of 8.66% above its 52-week low of 12.70, set on May 15, 2023.
Investors are pessimistic about the Kenyan market, indicating that they anticipate earnings will not grow as fast as they have historically.
The market is trading at a PE ratio of 5.0x which is lower than its 3-year average PE of 10.1x.
What do Investors Favour?
Investors favour the Materials sector the most for future growth which is trading above its 3-year average PE ratio.
They favour the basic Materials industry which is trading above its 3-year average PE ratio of 8.5x.
Analysts are expecting an annual earnings decline of 10.5%, which is less than its past year’s earnings decline of 68.2%.
The materials sector covers companies providing goods for use in manufacturing like mining, forest products, construction materials, packaging, and chemicals companies.
Case in Point Bamburi Cement which has driven the market in past seven days and closed the day trading at Ksh.23.9 per share, up 4.8% with PE ratio of 44x.
Crown Paints stocks have rallied, for the past seven days, and closed Wednesday at Ksh.37 with an average PE ratio of 6.4x