Total Kenya Ltd., the local unit of Europe’s third-largest oil company, climbed to a one-month high after Business Daily reported it received 5.2 billion shillings ($59.4 million) in new capital from its parent.
The shares rose 1.4 percent to 14.05 shillings by the 3 p.m. close in the capital, Nairobi, the highest since Jan. 21. About 101,000 securities traded, more than four times the three-month daily average, according to data compiled by Bloomberg.
Total SA increased its stake to 93.96 percent from 87.27 percent in May after providing capital worth 5.2 billion shillings, the Nairobi-based newspaper reported today, citing regulatory filings.
“The capital will help retire part of the debt that had suppressed Total’s profit growth due to the high interest expense,” Faith Atiti, an analyst at Nairobi-based NIC Securities Ltd., said today in an e-mailed note to clients.
Total Kenya reported a loss of 259.7 million shillings in the six months ended June 30, compared with a profit of 79.7 million shillings a year earlier, as financial expenses increased by 749 million shillings, it said in August.
The stock has gained 1.4 percent this year, underperforming a 12 percent advance by the Nairobi Securities Exchange All-Share Index.