Mota Rises on 500 Million-Euro New Africa Orders: Lisbon Mover
Mota-Engil SGPS SA, Portugal’s biggest construction company, rose the most in almost two months after winning contracts in two new countries in Africa.
The stock climbed as much as 5 percent to 2.32 euros, the biggest intraday gain since April 29, and traded 4.1 percent higher to 2.3 euros at 10:56 in Lisbon. That boosted Mota-Engil’s market value to 470 million euros ($627 million). Trading volume was about 1.4 times the three-month daily average.
“We see as very positive the expansion of the company’s international operations considering the tough environment it is facing in the domestic market,” Bruno Silva, an analyst at Banco BPI, said in a note today. The contracts represent 15 percent of the company’s total construction order book as of March 13 and 31 percent of the African order book, he said.
Mota-Engil said in March it planned to enter new markets in Africa including Zambia, Ghana, Uganda and Kenya. The company is “confident” it will meet its year-end goal of an order book exceeding 3.5 billion euros, up from 3.4 billion euros in the 2012, Chief Executive Officer Goncalo Martins said on May 21.
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