Bloomberg News

AccessKenya Heads for Largest Daily Increase in 5 Weeks

July 09, 2012

AccessKenya Group Ltd. (ACCESS), the East African nation’s only publicly traded Internet company, climbed the most in a month as investors speculated first-half earnings will increase.

The stock climbed as much as 7.4 percent, the most since June 5, to 5.10 shillings and traded at 5 shillings as of 1:36 p.m. in Nairobi.

The company expects higher first-half earnings after it increased the number of corporate customers this year to 5,000, Managing Director Jonathan Somen said June 12. The company had 4,700 at the end of 2011, according to its annual report. Net income in the 12 months to December 2011 was 109 million shillings ($1.3 million) compared with a loss of 8 million shillings a year earlier.

“Much as the company returned to profit last year they were still struggling and we should expect more recovery this year even though it will not be exceptional,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd. said in a phone interview today.

AccessKenya plans to add 50 buildings to its fiber-optic network and lengthen the link by 50 kilometres (31 miles) in the second half of this year, Somen said June 28.

Shares in Nairobi-based AccessKenya plunged 62 percent last year. The company has gained 1.9 percent this year, underperforming the benchmark NSE All Share Index (NSEASI), which has advanced 26 percent.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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