Kakuzi stock hits new high after Kibunga snap up

Market News

Kakuzi stock hits new high after Kibunga snap up


Investment brokers on NSE trading floor in Nairobi. FILE PHOTO | NMG 

The share price of agricultural firm Kakuzi has rallied to an all- time high of Sh423.50, boosted by news that billionaire investor John Kibunga Kimani has purchased an additional stake worth Sh101 million.

Kakuzi has bucked the trend among the six plantation stocks at the Nairobi Securities Exchange (NSE) as the only one with a price gain in the year-to-date, up 36.6 percent since January.

Regulatory filings for July showed Mr Kimani purchased an additional 263,526 shares in the firm, raising his stake to a new high of 32 percent.

Standard Investment Bank (SIB) said this move has given a boost to the share, which has in the past responded with a gain whenever Mr Kimani announced he was upping his stake.

“Kakuzi is at its highest recorded price possibly on news of increased ownership by a major shareholder,” said SIB in a market note.

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The firm now has a market capitalisation of Sh8.3 billion, up from Sh6.08 billion at start of the year.

The rise is despite the general bear market on the NSE and agricultural firms feeling the pressure of depressed prices.

Sasini share has taken a beating of 14.57 percent since January while the Williamson Tea stock is down 12.67 percent. Limuru Tea, Eaagads and Kapchorua shares have also dipped by six percent, 3.45 percent and 0.33 per cent respectively.

Kakuzi posted a nine percent decline of Sh245.58 million in net profit for the half year to June, down from Sh270.45 million over lower revenues from tea.

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