Feb. 20 (Bloomberg) -- Mechanical Lloyd Co., which sells cars, trucks and farming machinery in Ghana, rose to the highest in almost 2 1/2 years as the company’s second-biggest investor sold its stake.
The stock rose 6.7 percent to 17 pesewas by the 3 p.m. close in the capital, Accra. That’s the highest since September 2010, according to data compiled by Bloomberg. As many as 8.83 million shares were traded, in line with the 17.6 percent holding of the West African nation’s state-owned pension fund, the data show.
The Social Security and National Insurance Trust sold its holding back to Mechanical Lloyd’s owners, Jerome Eshun, general manager in charge of investment and development, said by phone today. The Accra-based fund negotiated the price, he said, declining to comment further.
“It’s a good show for the seller,” Nana Kofi Agyeman Gyamfi, a stock trader at Merban Stockbrokers Ltd. in Accra, said by phone today. “Considering the price at the time of purchase and today, it thought it was a good day to let them go.”
Managing Director Terence Ronald Darko, who has headed the company since 1977 according to its website, wasn’t immediately available to comment, a woman who answered the phone at his Accra office said today. Darko holds 24 percent of the company’s stock, according to data compiled by Bloomberg.
Mechanical Lloyd’s net income rose to 6.6 million cedis ($3.5 million) in 2012 from 3.2 million cedis a year before as sales grew 39 percent to 47 million cedis, it said in a Feb. 5 statement to the Ghana Stock Exchange.
“For Mechanical Lloyd, once the currency is stable, expect them to perform well,” said Gyamfi. “We expect the cedi to be more stable this year than last year, considering government’s plans to cut the budget deficit.”
After falling 14 percent against the dollar in 2012, the cedi has gained 0.3 percent this year to trade at 1.899 per dollar today.
To contact the reporter on this story: Moses Mozart Dzawu in Accra at firstname.lastname@example.org
To contact the editor responsible for this story: Emily Bowers at email@example.com