Bloomberg News

East African Cables Reaches Highest in Five Weeks: Nairobi Mover

July 27, 2012

East African Cables Ltd. (EACL), the region’s biggest cable manufacturer, rose to its highest in five weeks on an improved sales outlook before paring the gain to a two-day high.

The stock rose 2.4 percent to 10.90 shillings as of the 3:00 p.m. close in Nairobi, the strongest level on a closing basis since July 25, according to data compiled by Bloomberg.

The World Bank approved $684 million in funding for a power project connecting Ethiopia’s electrical grid with that of Kenya, Makhtar Diop, World Bank’s vice president for Africa, said on July 13. Ethiopia will receive $243 million, while Kenya, east Africa’s biggest economy, will get $441 million.

“Investors are interested in the outlook because there is a lot of investment in electricity infrastructure in East Africa,” Davis Mika, a Nairobi-based independent analyst, said in a phone interview today. “That will create demand.”

The project is the first phase of a regional east Africa power-integration program, which will probably cost $1.3 billion, benefiting 212 million people living in five countries with a combined GDP of $107 billion, Diop said.

East African Cables’ profit in the six months through June jumped 59 percent, the company said July 24. Net income was 274 million shillings ($3.25 million), compared with 172.3 million shillings a year earlier. Revenue slipped to 2.25 billion shillings from 2.35 million shillings a year earlier.

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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