June 17 (Bloomberg) -- Mota-Engil SGPS SA, Portugal’s biggest construction company, closed at the highest level in more than four months after winning contracts in two new countries in Africa.
The stock climbed 3.8 percent to 2.29 euros, the highest level since Jan. 29, boosting Mota-Engil’s market value to 468 million euros ($624 million). Trading volume was about 1.7 times the three-month daily average.
Mota-Engil said yesterday it won orders in Africa valued at about 500 million euros. The new contracts secured the company’s entry in two new African countries, Zambia and Ghana.
“We see as very positive the expansion of the company’s international operations considering the tough environment it is facing in the domestic market,” Bruno Silva, an analyst at Banco BPI, said in a note today. The contracts represent 15 percent of the company’s total construction order book as of March 13 and 31 percent of the African order book, he said.
Mota-Engil said in March it planned to enter new markets in Africa including Zambia, Ghana, Uganda and Kenya. The company is “confident” it will meet its year-end goal of an order book exceeding 3.5 billion euros, up from 3.4 billion euros in the 2012, Chief Executive Officer Goncalo Martins said on May 21.
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