Mumias Sugar in more trouble with losses past Sh3bn

What you need to know:

Mumias expects it to record losses of at least Sh3.4 billion this year, more than 25 per cent higher than the Sh2.7 billion posted last year.
It attributed the fall to shortage of cane. It has been struggling with a cash crunch that forced the government to give it a Sh1 billion bailout.

Troubled sugar maker Mumias has sunk deeper into losses, triggering yet another profit warning.

The management expects it to record losses of at least Sh3.4 billion this year, more than 25 per cent higher than the Sh2.7 billion posted last year.

It attributed the fall to shortage of cane. It has been struggling with a cash crunch that forced the government to give it a Sh1 billion bailout.

In Tuesday’s NSE trading the company’s stock remained stuck at Sh1.90 per unit despite a general downward movement of other counters which saw the 20-share index fall below the 4,500 mark.

The indicative Nairobi Securities Exchange (NSE) index closed at 4,482.2 points from the previous day’s 4,509.8 points with shares worth Sh520 million changing hands.

Losing counters

Some of the counters on the losing side included insurer Pan Africa Holdings which announced a 32.5 per cent drop in net profits at the beginning of trading.

The insurer reported an after tax profit of Sh264 million in the six months to June down from Sh391 million in a similar period last year.

The market responded to the announcement by exchanging the stock 5.7 per cent lower at Sh66 per share.

Cigarette maker BAT was on the gaining side following the Kenya Revenue Authority’s omission of its competitor, Mastermind, from a list of licensed producers or sellers of excisable goods in the country.

Interim dividend

BAT shares traded at Sh857 each, gaining Sh59 from the previous day.

“BAT was the leading mover on block trades. The cigarette manufacturer was up on foreign investor demand,” said Standard Investment Bank.

BOC Gases which announced a 24 per cent drop in profit at the beginning of the week was on the gaining side, up Sh11 to trade at Sh128 each.

The gas company announced an interim dividend of Sh2.20 per share.

Stocks on the losing side were banking counters CfC Stanbic and Standard Chartered.

Standard Chartered stock lost Sh12 to trade at Sh279 per unit.

The bank is yet to release its half-year results.

Loss-making firm Kenya Airways was the busiest counter moving 6,412,900 shares attributed to local investors trading. The price of the counter, however, remained unmoved at Sh6 per unit.