Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Kenya’s Mumias Sugar Gains 2nd Day; Heads for One-Week High

Feb. 20 (Bloomberg) -- Mumias Sugar Co., Kenya’s biggest producer of the sweetener, gained for a second day and headed for its highest close in a week on speculation the stock was oversold.

Mumias gained 4.4 percent to 4.75 shillings by 2:03 p.m. in Nairobi, the capital. A close at this level would be the highest since Feb. 13. The shares are still down 11 percent this year.

“The stock is oversold because the earnings we saw did not warrant a such a decline,” Francis Mwangi, head of research at Nairobi-based Standard Investment Bank Ltd., said in a phone interview today. “We have a value of 8.3 shillings so to us it is attractive at the current levels.”

The valuation is based on sugar distribution costs having fallen and the average price of sugar in the six months to Dec. 31 rising to 106,000 shillings ($1,276) per ton from 69,000 shillings, Mwangi said.

Mumias posted profit for the six months through December of 881.3 million shillings, compared with 829.6 million shillings a year earlier, it said Feb. 3. Revenue declined to 6.92 billion shillings from 7.32 billion shillings.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.