Uchumi Supermarkets Ltd. (UCSP), Kenya’s only publicly traded retail chain, climbed to its highest in almost 10 months as investors continued to buy the stock on bets it was oversold.
The shares rose 0.8 percent to 12.95 shillings by the 3 p.m. close in Nairobi, the strongest since June 20, after earlier advancing as much as 2.7 percent.
“There is talk in the market about it being oversold and now guys are jumping in, that is why it has risen so fast in three months,” Rufus Mwanyasi, head trader at Nairobi-based Canaan Capital Ltd., said in a phone interview. “We would expect some correction in the coming month because a stock cannot trade in a straight line for so long.”
The shares traded at 6.70 shillings on Dec. 9, the lowest since at least 1997, according to data compiled by Bloomberg. Year-to-date the stock is the best performer on the Nairobi Securities Exchange (NSEASI), having risen 68 percent.
To contact the reporter on this story: Eric Ombok in Nairobi at firstname.lastname@example.org.
To contact the editor responsible for this story: Shaji Mathew at email@example.com.