Illovo share price rises
Illovo Sugar Malawi shareholders on the Malawi Stock Exchange have a reason to smile as the share price for the counter continues to rise, registering an increase of over K100 in less than a month.
Illovo shares are now trading at K700 from K600 last month and as low as K200 during the same period last year.
In an interview, Minority Shareholders Association of Listed Companies General Secretary Frank Harawa attributed the movement to the company’s trading statement, which paints a positive outlook.
“There are also announcements of diversification in the company and all these have excited the market and this is not the limit because I believe the price will continue rising,” Harawa said.
Market analyst Cosmas Chigwe said the counter will maintain a positive trajectory on the local bourse going forward.
He added that with the announcement that profit for the listed firm will be higher than that of last year; the counter has become more attractive to investors.
“The demand for sugar is relatively stable despite the small threat from new entrants but as the company seeks to explore markets beyond Malawi’s borders, growth should be reasonably expected,” Chigwe said.
Last month, Illovo Sugar Malawi announced that it sees an increase of profit after tax of between K32 billion and K34.5 billion for the half year ending February 2023.
Speaking in an earlier interview, Illovo Sugar Malawi Board Chairperson Jimmy Lipunga said the company expects the share price to continue rising.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.