Unga Group Posts 31% Growth in PAT

Unga Group Announces 10.1% Rise in Turnover

The bourse closed in a bleak state occasioned by the downturn on all the market indicators. The bear has continued dominating the market despite the gains registered in the currency front, posing the question “Is there a chance of a market correction before the year end?” The NSE-20 Share Index lost a further 0.49% to close at 4153.00 points whilst the Nairobi All Share Index (NASI) rescinded by 0.86% to close at 145.65. Investors’ wealth similarly shrank by 0.86% to perch at KES 2,045.82 billion whilst equity turnover declined by 70.16% to KES 0.43 billion. The decliners outweighed the advancers, resulting in an A/D ratio of 0.61x.

The listed flour miller, Unga Group Limited (NSE: UNGA) posted some good news to its investors in the wake of a turbulent period of depreciating shilling, poor corporate announcements and generally weak market fundamentals. The miller announced a 10.1% rise in its turnover to KES 18.72Bn bolstered by increased availability of the maize grain compared to the previous year and the new route-to-consumer strategy implemented earlier on in the year which facilitated improved product availability and consumer reach.

Gross profit was also up; 18.05% resulting in a bottom line growth of 31.1% to KES 622Mn as at 30th June 2015. The board recommended the payment of a first and final dividend of KES 1.00 with the book closure slated for 02nd December 2015. The stock price closed at KES 43.75, registering a gain of 1.74% buoyed by the positive news from the company which stocked investor confidence

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most actively traded stock accounting for 27.75% of the total market as positive market sentiments from the acquisition of Pro-credit Bank Congo continued stocking the price. East African Breweries Ltd (NSE: EABL) closed in second, accounting for 23.47% of the days traded value.

CFC Stanbic of Kenya Holdings Ltd (NSE: CFC) topped the gainers list with a price surge of 3.45% to close the day at KES 90.00. Liberty Kenya Holdings Ltd (NSE: CFCI) climbed up 2.38% closing the day as the second best gainer at KES 21.50.

Sasini Ltd (NSE: SASN) was the majorlaggard of the day, tapering by 5.20% to close at KES 15.50. TPS Eastern Africa Ltd (NSE: TPSE) straggled behind, depreciating by 3.39% to KES 28.50.