Kapchorua Tea Kenya Plc was last week’s top gaining stock at the Nairobi Securities Exchange (NSE) after edging upwards by 13.4% on thin volumes traded.
According to a recent report by Kenya-based financial services group, Amana Capital, the tea growing firm’s share price closed at Ksh76.00 ($0.76) from the previous week’s close of Ksh67 ($0.67)
“Year-to-date the stock price has gained 16.03%,|” said Kevin Njugi Mwangi, an Investment Analyst at Amana Capital Limited.
The impressive performance follows a tumulous few months after Kenyan companies suffered under the weight of a prolonged general election in 2017 and a drought wreaked havoc on the region’s agriculture sector.
The 2017 polls, in which President Uhuru Kenyatta was declared the winner, were hotly contested by Kenya’s opposition party, the National Super Alliance.
As a result, a total of 12 listed firms issued profit warnings to prepare investors that their bottom-lines were headed for at least a 25% drop.
The aforementioned drought had a negative effect on agriculture sector profits, knocking off money from five out of the country’s six listed firms operating within the industry. Four of them succumbed to losses.
At the time, only Kenya’s Kakuzi Tea saw its profits grow by 5.2% to Ksh591.6 million ($5.88 million) even as Williamson Tea and Kapchorua Tea both issued full year profits warnings.
Kachorua, however, looks to be on the path to recovery following last week’s performance.