March 15 (Bloomberg) -- TransCentury Ltd., a Kenyan investor in infrastructure projects, posted its longest winning streak on record as buyers took advantage of a price drop to accumulate the stock.
The stock rallied for a seventh day, gaining 7 percent to 34.50 shillings by the 3 p.m. close in Nairobi, the capital. That’s the highest level since Sept. 12, 2011 and the longest winning streak since the company listed in July 2011. About 48 percent of the three-month average volume of shares were traded, according to data compiled by Bloomberg.
TransCentury’s stock fell 14 percent last year, underperforming the Nairobi Securities Exchange’s All-Share index, which climbed 39 percent and ranked as sub-Saharan Africa’s best performer in 2012 after Nigeria. In January, TransCentury was selected among the top 11 stocks to watch this year by Old Mutual Securities Ltd.
“It was one of the laggards last year and it has been slowly recovering since the beginning of the year when investors began buying the stock after the price fell,” Rufus Mwanyasi, head trader at Nairobi-based Canaan Capital Ltd., said in a phone interview.
The stock traded at a 12-month low of 20 shillings Oct. 11.
TransCentury in July posted a six-fold increase in first-half profit to 326.1 million shillings ($3.8 million) as revenue surged 56 percent to 7.06 billion shillings on higher earnings from its power infrastructure and engineering units.
In the year to date, TransCentury has surged 49 percent, the third-best performing stock on the Nairobi Securities Exchange. The All-Share Index has gained 22 percent in that period, according to data compiled by Bloomberg.
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