Jan. 24 (Bloomberg) -- Barloworld Ltd., a seller of equipment to mining and construction companies, rose to the highest price in almost nine months after saying it made “solid progress” in the fiscal first quarter.
Barloworld advanced 1.4 percent to 90.53 rand, the highest since May 2012, at the close of trading in Johannesburg. Today’s gain extended the stock’s three-day increase to almost 6 percent.
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,” he said. “The rand’s weakness has contributed. Clearly, they are on track for earnings to be higher than last year.”
About 1.85 million shares were traded, more than double the daily average in the last three months.
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