Kenya Electricity Rises After Record Weekly Drop: Nairobi Mover
Kenya Electricity Generating Co. (KEGC), the East African nation’s biggest power producer, climbed for the first time in six days as investors took advantage of the biggest weekly drop on record to accumulate the stock.
The shares surged as much as 9.7 percent to 12.50 shillings, the biggest intraday gain in almost four years, and closed 7 percent higher at 12.20 shillings in Nairobi. About 610,400 securities changed hands, or 87 percent of the three- month daily average. The stock declined 17 percent last week, the most since the company listed in May 2006.
“It was hit by profit taking last week and now investors are getting back,” Davis Mika, an analyst at Nairobi-based Contrarian Investing Kenya Ltd., said in a phone interview.
The stock has climbed 39 percent this year, the best performer on the Nairobi Securities Exchange All-Share Index, which has advanced 8.6 percent. Kenya Electricity was rated buy on Jan. 11 in new coverage by Nairobi-based Genghis Capital Ltd., which gave a price target of 20.90 shillings on the stock.
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