June 15 (Bloomberg) -- KenolKobil Ltd., a Kenyan fuel retailer with operations in nine African countries, extended gains into a second day after saying it expects first-half net income will climb more than 50 percent.
The shares rose as much as 4.9 percent to 10.80 shillings before trading 1.5 percent higher at 10.45 shillings by 11:35 a.m. in Nairobi.
“The company gave a profit forecast, that is why it is going up,” Renaldo D’Souza, an analyst at Nairobi-based Genghis Capital Ltd., said in a phone interview today. “Consumption should go up due to increased economic activity”.
Kenya’s Finance Minister Uhuru Kenyatta last week forecast economic growth of 5.3 percent this year and 6.1 percent in 2012 in a speech to parliament.
The east African nation cut the cost of so-called super petrol, the most commonly used gasoline, by 0.4 percent in the capital, Nairobi. The decision reduces the price of a liter (0.3 gallon) of super petrol to 114.93 shillings ($1.29) from today until July 14, the Nairobi-based Energy Regulatory Commission said in its monthly review of fuel costs, emailed yesterday.
Nairobi accounts for as much as 55 percent of fuel consumption in east Africa’s biggest economy. The price of kerosene, which is used for cooking and lighting, will drop by 6.9 shillings per liter in Nairobi after the government removed excise duty on the fuel, while diesel will decrease by 1.72 shillings per liter, the commission said.
--Editors: James Kraus, Gavin Serkin
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