Kenya Airways Jumps to One-Year High on Fuel HedgingEric Ombok
Kenya Airways Ltd., sub-Saharan Africa’s third-largest airline, rose to its highest level in a year as gains from its fuel hedging strategy will probably boost first-half profit, according to Old Mutual.
The company’s shares, the third-worst performer in Kenya this year, gained 9.3 percent to 12.35 shillings by the 3 p.m. close in the capital, Nairobi, the highest level since November, 2012. About 1.46 million shares traded, or 3.5 times the three-month daily average.
“The company is in a better position compared to last year when there was a hedging loss,” Eric Munywoki, a research analyst at Nairobi-based Old Mutual Securities Ltd., said by phone. “For this year we expect things to be good in terms of hedging.”
Kenya Airways posted a loss of 7.86 billion shillings ($92 million) in the 12 months through March, compared with a profit of 1.66 billion shillings a year earlier, it said on June 14.
The company will announce earnings for the six months through September on Nov. 13.