Scangroup Rises to Record High on Election Bets: Nairobi Mover
The stock advanced 2.9 percent to 70.50 shillings by the 3 p.m. close in Nairobi, the capital, the highest since it was first publicly traded in 2006. More than seven times the three- month daily average volume of shares changed hands.
Elections for the presidency and other levels of government are scheduled for March 2013. Advertising spending in Kenya surged 43 percent in the first half of 2012 to 40.1 billion shillings ($467 million) from a year earlier, according to Nairobi-based market researcher Ipsos-Synovate.
“Campaigns for the upcoming elections seem to have begun and Scangroup benefits from the advertising spending,” Davis Mika, an analyst at Nairobi-based Contrarian Investing Kenya Ltd., said by phone today.
The company is also benefiting from foreign investors who are seeking exposure to Africa’s growing advertising market, Aly Khan Satchu, chief executive officer of Rich Management Ltd., a Nairobi-based adviser to companies and high net-worth individuals, said by phone.
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