Friday, February 28, 2014

Mumias share up on Comesa reprieve news


A tractor transports sugarcane to a factory in Kisumu County. FILE

A tractor transports sugarcane to a factory in Kisumu County. FILE 
By CHARLES MWANIKI
  


Mumias Sugar’s share enjoyed a day of near maximum gains Thursday as investors reacted positively to news of a one-year extension to Comesa sugar safeguards.

The counter was the most heavily traded Thursday at the NSE, with 5.15 million shares traded and a closing price of Sh3.55, mainly on local investor buying.

The sugar miller has enjoyed positive investor sentiments in the past one week since announcing a smaller loss of Sh73.4 million for the six months to December 2013.

This was a 94 per cent reduction from a loss of Sh1.1 billion recorded over a similar period in 2012, which came as a result of high costs and reduced sugar sales.

“The company needs to keep addressing its operating costs, which are higher compared to other companies in the Comesa region, as well as deal with cane poaching issues,” said old Mutual Securities research analyst Eric Munywoki.

The miller said on Monday it has stopped all capital expenditure plans, and is now looking for a strategic investor to partner on the Tarda irrigation project.
The other top gainer in the market Thursday was Car & General, which started reversing the share price slide that came after the share went ex-bonus and ex-dividend from February 19. The counter gained 9.7 per cent Thursday to close at Sh34, although on thin volumes.

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