KenolKobil Jumps to 10-Week High on Outlook Bets: Nairobi Mover

KenolKobil Ltd., a Kenyan petroleum retailer with operations in 10 African nations, climbed to the highest level in 10 weeks on bets its move to stop forward purchases of fuel will help boost earnings.

The stock advanced for a fourth day, rising 2.4 percent to 8.70 shillings by the 3 p.m. close in the capital, Nairobi, the strongest since Aug. 8. About 1.16 million shares traded, or 1.3 times the three-month daily average volume.

KenolKobil reported a loss of 6.28 billion shillings ($73.8 million) in 2012 compared with a profit of 3.27 billion shillings a year earlier, after posting a foreign-currency loss. The company, which had previously hedged a quarter of its fuel imports, in May announced it would stop forward purchases. First-half earnings rose to 147.4 million shillings compared with a loss of 3.9 billion shillings a year earlier.

“Full-year profit will be north of 200 million shillings after they adopted better management of their inventory, they stopped hedging and because of the stable Kenya shilling,” Muammar Ismaily, head of research at Nairobi-based Genghis Capital Ltd., said by phone today.

The shares have fallen 36 percent this year, making it the worst performing Kenyan stock, compared with a 35 percent gain on the FTSE-NSE 25-Share Index.

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