Sasini of Kenya Advances on Higher Tea Price Speculation
Sasini Ltd. (STCL), Kenya’s largest coffee and tea producer by market value, gained on speculation tea prices will continue to climb.
The shares added as much as 2 percent to 12.50 shillings, and closed 1.2 percent higher at 12.40 shillings in Nairobi, the capital.
“Tea prices have rallied in the last couple of months and they are structurally quite high and on an upward trend,” Aly Khan Satchu, chief executive officer of Nairobi-based investment company Rich Management Ltd., said in a phone interview today.
Rising consumption and a drop in global production will boost prices to a record this year, according to McLeod Russel India Ltd., the world’s biggest tea grower. African tea prices rose to the highest in at least a year at the weekly sale in Kenya on June 26 when the average price of the leaves increased 3.8 percent to $3.02 a kilogram. The leaves traded at an average of $3 a kilogram on July 3.
Kenya is the world’s biggest producer of black tea, the main foreign-exchange earner in east Africa’s largest economy.
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