Total Kenya Ltd., the unit of Europe’s third-largest oil company, made its biggest gain in almost four months after Standard Investment Bank Ltd. raised its recommendation on the stock to a buy from sell.
The shares added 5.3 percent to 15.85 shillings by the close in the capital, Nairobi, the most since April 3. About 4.6 times the three-month daily average of shares were traded.
Standard Investment Bank upgraded its target price on the stock to 37.68 shillings from 15.30 shillings, analyst Eric Musau said in a note e-mailed after the Kenyan market closed yesterday.
“While Total Kenya posted a loss for financial year 2011 and financial year 2012, we see a strong recovery in 2013,” he said. Standard Investment Bank boosted their prediction for revenue by 12 percent to 119.1 billion shillings ($1.4 billion), Musau said.
Total Kenya’s shares gained 14 percent this year, while the FTSE NSE Kenya 25 Index rallied 27 percent.