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Early investors were looking at a paper wealth growth of 609 per cent that was easily cashed in considering the significant demand that perseveres the counter.
Signs were clear that Jatu shares were heading towards the Santa Claus rally after gaining considerably since Christmas.
A Santa Claus rally is a calendar effect that involves a rise in stock prices during the last five trading days in December and the first two trading days in January.
Jatu ended the year as the best performing stock on DSE this year in terms of price appreciation.
Zan Securities said in its Weekly Market Wrap-ups that the equities market echoed their sentiment where they projected an increase in prices, volume and turnover.
“We expect the market to continue with positive performance owing to performance of financials and industrials,” Zan Securities said.
Jatu share has been rallying after it was listed on the bourse a month ago. A share was listed at 420/-, but appreciated to 2,980/- to puzzle stock analysts on the demand force behind.
According to a DSE daily market report, the firm market cap climbed up from 1.08bn/- on the listing day to 6.45bn/- yesterday, and overtook Uchumi Supermarkets with market capitalisation of 1.82bn/- and TaTePa market cap of 2.24bn/- and MuCoBa with 3.26bn/-.
Jatu market cap is slightly behind Yetu Microfinance Bank with 6.66bn/-, while TBL is the largest in terms of market cap at 3.216tri/-.
Analysts believe that investors are buying Jatu stocks to have a membership requirement status which will warrant one to also participate in the farming project.
Jatu is involved in mainly four activities being agricultural activities, industrial activities, networking marketing and packaging and sales.
According to extracts in the Memorandum of Information (MoI), revenue has been doubling since 2017, displaying sharp growth still by the company.
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