Unga Group Rises to 2-Year High on Dividend Bets: Nairobi Mover
Unga Group Ltd. (UNGL), a Kenyan grain miller, rose the highest in almost two years on speculation that the company will increase its dividend payment.
The stock advanced 3 percent to 13.60 shillings by 11:16 a.m. in Nairobi, the capital, the highest since October 2010, according to data compiled by Bloomberg.
“There is expectation of better performance which may see the dividend payment raised to as much as 1 shilling from last year’s 0.75 shillings,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said by phone today. “The strengthening of the shilling has also lowered its foreign-exchange exposure especially for imported grains.”
Net income for the six months to Dec. 31 rose to 149 million shillings ($1.76 million) from 146.7 million shillings with sales climbing to 8.42 billion shillings from 6.26 billion shillings a year earlier, it said on March 1. The Kenyan shilling has advanced 6.1 percent against the dollar from June 30, 2011, to the end of June this year, the best-performing currency in Africa.
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