By CHARLES MWANIKIMore by this AuthorKenyan cement stocks remain overpriced in comparison to African peers, with projected lower earnings for the 2017 financial year expected to put downside pressure on the stocks this year. A new cement sector report by UK-based investment bank Exotix partners says local producers are facing cost-side pressure on higher clinker cost due to rising coal prices in the global markets. They are also facing increased competition from cheaper imports from the region and a growing gap between production and demand in a slowing economy. In 2017, global coal prices on average rose 34 per cent following a cutback in production in China for environmental reasons, Exotix says. “Kenya cement is overvalued, in our view, at a 23 per cent premium to sub-Sahara Africa (cement) stocks on average.

Source: Daily Nation January 08, 2018 06:45 UTC