Williamson Tea Kenya Ltd. (GWKL), the country’s second-biggest tea company, headed for its lowest close in three months after the country’s industry board said tea production may decline this quarter.
The stock dropped 3.4 percent to 255 shillings by 1:17 p.m. in Nairobi, the capital. A close at that level would be the lowest since Oct. 21, according to data compiled by Bloomberg.
Tea output may decline to about 70 million kilograms (154 million pounds) in the three months through March, from 85 million kilograms a year earlier, after dry weather and frost damaged the crop, the Tea Board of Kenya said today.
“They got windfall gains last year from the currency which will not be repeated again unless they were smart enough to buy cover when the exchange rate was at a good level,” Aly Khan Satchu, chief executive officer of Nairobi-based investment company Rich Management, said in a phone interview today.
To contact the reporter on this story: Eric Ombok in Nairobi at email@example.com.
To contact the editor responsible for this story: Shaji Mathew at firstname.lastname@example.org