On Friday the Uchumi Supermarkets share closed at KES 18 per share. This is the highest level the share has reached in six years. During the six hour trading period, 708,800 shares worth KES 12.78 million were traded as the share increased by 4.1% and recorded the sixth highest increase on the market.
Uchumi reopened trading in May 2011 after a 5 year suspension upon clearing most of its debts and lifting of receivership by the lending banks (to whom they owed the money).
The share performance over the last 3 months is shown below:
According to Bloomberg.com, the share has climbed 94% this year.
This increase can be attributed to increased investor demand as the company implements its expansion strategy. In August the company which opened its first store in Dar es Salaam, Tanzania’s commercial capital. It also opened its second one in Uganda after having opened the initial one in 2005, it plans to open another seven outlets in the region, three in Uganda and four in Kenya.
The company’s pretax profit for the six months through December 2012 climbed 26% to KES 204.3 million.