East African Breweries leaps to record high on profit bets

By AGENCIES

EAST African Breweries Ltd. (EABL), the region’s biggest beermaker, touched the highest level on record, as investors speculated profit will increase in the year ending this month.

The stock rose as much as 6.8 percent in intraday trading to 235 shillings, the strongest level since at least May 1997, before paring its advance to close at 223 shillings, the highest price attained since Jan. 2011, according to data compiled by Bloomberg.

“The stock has generated good appetite from investors as there is expectation of strong performance for the year ending June on the back of turnaround for loss-making Serengeti Breweries in Tanzania to breaking-even level,” Eric Musau, an analyst at Nairobi-based Standard Investment Bank Ltd., said in a phone interview.

Kenya’s biggest company by market value posted a 17 percent increase in first-half profit, which advanced to 4.88 billion shillings ($57.9 million) in the six months through December, the Nairobi-based company said in February. Sales rose 36 percent to 27.8 billion shillings.