Foreigners’ appetite for EABL share sustains rally
A quality assurance official inspect a beer at EABL plant. Photo/FILE
Foreign investors’ huge appetite for beer maker EABL’s shares saw the stock hit Sh334.5 billion market capitalisation in Wednesday’s trading, sustaining a rally that has seen the stock surge 42.9 per cent in the past one month.
The share has been the toss of investors at the Nairobi Securities Exchange, outpacing the market that has grown by three per cent over the same period, as indicated by the NSE 20-Share Index.
Since the beginning of the week the counter’s valuation has shot up by Sh25.3 billion to Sh334.5 billion following a rise in its average unit price to Sh423 on Wednesday from Sh409 a day earlier and Sh391 at the beginning of the week.
“EABL made further gains, adding 3.4 per on the back of continued foreign investor interest on the brewer coupled with thin supply,” said Standard Investment Bank.
On Wednesday the counter traded 560,300 shares, with foreign investors buying 93.8 per cent.
Last month analysts at Kestrel Capital had said the share, then trading at Sh298, was overpriced giving it a fair value of Sh289 per unit.
The increased interest from foreign investors has fuelled speculation of the company being at verge of making a major announcement. EABL is majority owned by international firm, Diageo, based in the UK.
The beer maker’s rally has seen it become the most capitalised company at the NSE.
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