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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