British American Tobacco Kenya Ltd. (BATK), the country’s biggest cigarette manufacturer, rallied to a record on speculation that first-half earnings will increase.
The shares jumped 1.6 percent to 380 shillings by 10:45 a.m. in Nairobi, the capital, the highest since at least 1997 and boosting gains this year to 55 percent.
BAT Kenya plans to increase capital expenditure 9.1 percent this year to boost production, Finance Director Philip Lopokoiyit said Feb. 27. Full-year profit surged 75 percent to 3.09 billion shillings ($37 million) as sales climbed 49 percent, the company said Feb. 23.
“We should expect half-year earnings soon and generally it will be a strong performance, an improvement from last year,” Kuria Kamau, research analyst at Nairobi-based Old Mutual Securities Ltd. said in a phone interview today.
Semi-processed tobacco will “continue to generate strong revenue growth” on “impressive export revenue,” Old Mutual said yesterday in an e-mailed note to clients.
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