The shares gained 8.3 percent to 13 pesewas as of the close in the capital, Accra, the highest since Sept. 23, 2010.
“With the stable cedi that we have witnessed for some time now, investors are expecting that the company to sell more cars in the third quarter,” Nana Kofi Agyeman, a stock trader at Merban Stockbrokers Ltd. in Accra, said by phone today. “Cedi depreciation affects the value of cars and make it more difficult for people to buy.”
Ghana’s cedi, which weakened in the first seven months of the year by 16 percent against the dollar, appreciated 1.1 percent in August and is up 0.8 percent this month. It lost 0.5 percent to 1.9175 a dollar as of 2:02 p.m. in Accra.
Profit may increase 33 percent in the nine months through September on higher sales, Agyeman said. “The electioneering campaigns will also increase demand for the company’s vehicles,” he said.
President John Dramani Mahama will seek to win his first term in office and a second parliamentary majority for the ruling National Democratic Congress party in the December polls. Mahama, who replaced President John Atta Mills following his death in July, faces Nana Akufo-Addo of the main opposition New Patriotic Party.
Mechanical Lloyd’s profit increased 54 percent to 1.1 million cedis ($570,000) in the first half, said Agyeman.
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