Barloworld Ltd. (BAW), a seller of equipment to mining and construction companies, rose to its highest level in almost nine months in Johannesburg after announcing “solid progress” in its fiscal first quarter.
Barloworld advanced as much as 3.1 percent to 92 rand and traded 2.5 percent higher as of 12:15 a.m. local time, its highest since May 2012. Today’s gain brings its three-day increase to more than 7 percent, the most since Dec. 21, according to data compiled by Bloomberg.
Barloworld, which earned 90 percent of operating profit for fiscal 2012 from southern Africa, said yesterday in a statement that its combined firm order book for the region at December was 5.7 billion rand ($630 million), or 7.5 percent higher than the previous quarter.
The statement was “certainly reassuring,” said Mark Hodgson, an analyst at Cape Town-based Avior Research. “Mining is the key driver. The rand’s weakness has contributed. Clearly, they are on track for earnings to be higher than last year.”
About 1.23 million shares were traded, more than 160 percent of the daily average in the previous 90 days.
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