Sun International Ltd., a South African casino and hotel operator, rose the most in two weeks after announcing plans to build a 3 billion-rand ($299 million) complex pending a license transfer approval.
The stock rose as much as 3.8 percent, the biggest intraday gain since June 26, and traded 3.5 percent higher at 98 rand by 1:53 p.m, in Johannesburg. About 82,000 shares traded, or 36 percent of the 3-month daily average.
Sun International is applying to the Gauteng Gambling Board to relocate a casino to Menlyn, east of Pretoria, it said in statement after the market closed yesterday. Gauteng is the commercial hub of Africa’s biggest economy and includes Johannesburg and Pretoria. If the application is approved, Sun International will go ahead with the 3 billion-rand entertainment complex that includes a casino, hotel, conference center and entertainment arena.
“The market is probably taking a positive view on this,” De Wet Schutte, an analyst at Avior Research Pty Ltd., said in a phone interview from Cape Town. “It is one of the biggest casino projects in South Africa. They are targeting north of Gauteng, which has not been well covered for casino gaming activities.”
Today’s share gain reverses a loss in the year to date to an increase of 3.2 percent. This compares with an 11 percent advance for Tsogo Sun Holdings Ltd.