Jan. 26 (Bloomberg) — Kenya Power & Lighting Ltd., the east African nation’s sole electricity distributor, headed for its biggest gain in three weeks on increased demand for the stock before a bonus issue deadline runs out on Feb. 28.
The stock rose as much as 1 percent to 15.65 shillings and traded 0.7 percent higher at 15.60 shillings as of 2:42 p.m in Nairobi, the capital. A close at that level will be the biggest gain since Dec. 30, according to data compiled by Bloomberg.
“We may also see growing demand on Kenya Power ahead of the company’s books closing for the 1:8 bonus issue,” Kestrel Capital East Africa Ltd. said in an e-mailed note to clients today.
Investors have until Feb. 28 to buy the stock to be eligible for the company’s one-for-eight bonus share offer, according to data from the Nairobi Securities Exchange. The company’s shares are down 11 percent this year after declining 27 percent last year, according to data compiled by Bloomberg.
“Last year the fall was in line with the market that was down 30 percent,”, Vimal Parmar, head of research at Kestrel, said in a phone interview today.
By Eric Ombok, Bloomberg