Mumias Sugar Company touched a new all time low of KES 1.25 during Friday’s trading to set a new record as the lowest price ever recorded by a listed company at the NSE. The counter opened at Kes 1.30,trading in the range of Kes 1.25 – 1.35 and then closed at Kes 1.30 a share. Our view is that investors reacted negatively following the company’s announcement that it had stopped operations due to lack of enough cane.
Falling to such levels is never fun for company’s shareholder, but, depending on who you ask, it can be either a buy or a sell signal. Someone bearish on the stock might see it reaching its lowest price in a year as a sign of growing downward momentum and make sure they sell their shares.
Mumias trades an average volume of 477 000 shares on a daily basis out of 1.53 Billion outstanding shares with a free float of 1.13 Billion shares. On average, the counter. On a YTD Basis, the share price is down 44.68 % as shown above.
