Mumias Sugar Co., Kenya’s biggest miller of the sweetener, headed for its biggest advance in a month.
The stock climbed 3.1 percent to 4.95 shillings by 1:40 p.m. in the capital, Nairobi, its first gain in three trading days. The increase would be the biggest since Nov. 19 and the highest level since Nov. 30. More than one million shares traded, or 80 percent of the three-month daily average volume, according to data compiled by Bloomberg.
Kenya’s only publicly traded sugar company has declined 7 percent this year while the Nairobi Securities Exchange All-Share Index has rallied 37 percent. The 14-day relative strength index for Mumias closed at 27.8 on Dec. 14, according to data compiled by Bloomberg. A level below 30 signals to some technical analysts that the stock is oversold and set for a rise.
The RSI identifies possible turning points in indexes or securities by measuring the degree to which gains and losses outpace each other in a given period.