July 27 (Bloomberg) -- East African Cables Ltd., the region’s biggest cable manufacturer, rose to its highest in five weeks on an improved sales outlook before paring the gain to a two-day high.
The stock rose 2.4 percent to 10.90 shillings as of the 3:00 p.m. close in Nairobi, the strongest level on a closing basis since July 25, according to data compiled by Bloomberg.
The World Bank approved $684 million in funding for a power project connecting Ethiopia’s electrical grid with that of Kenya, Makhtar Diop, World Bank’s vice president for Africa, said on July 13. Ethiopia will receive $243 million, while Kenya, east Africa’s biggest economy, will get $441 million.
“Investors are interested in the outlook because there is a lot of investment in electricity infrastructure in East Africa,” Davis Mika, a Nairobi-based independent analyst, said in a phone interview today. “That will create demand.”
The project is the first phase of a regional east Africa power-integration program, which will probably cost $1.3 billion, benefiting 212 million people living in five countries with a combined GDP of $107 billion, Diop said.
East African Cables’ profit in the six months through June jumped 59 percent, the company said July 24. Net income was 274 million shillings ($3.25 million), compared with 172.3 million shillings a year earlier. Revenue slipped to 2.25 billion shillings from 2.35 million shillings a year earlier.
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