KENYA Airways Ltd., Sub-Saharan Africa’s third-biggest carrier, gained the most in a month after a report said the government is considering changes to the company’s board and management following a record annual loss.
Shares in KQ, as the company is known, closed at 6 shillings, a 5.3% rise and the biggest gain since August 11, according to stock market data.
More than 25 times the three-month daily average volume of shares traded.
“The market is taking the likelihood of changes in the board and management as a positive sentiment,” Kevin Tuitoek, a research analyst at Nairobi-based Genghis Capital Ltd., said by phone.
KQ, which is 30% owned by the government of Kenya and 27% by Koninklijke Luchtvaart Maatschappij (KLM) NV, is selling aircraft to raise as much as $320 million after the airline’s loss widened to 25.7 billion shillings ($243.6 million) in the year through March, from 3.38 billion a year earlier, on hedging and impairment charges.
The government is reviewing its shareholder agreement to grant the International Finance Corp., KQ’s biggest creditor, a seat on the board, Nairobi-based Standard newspaper reported on September 3, citing Treasury Secretary Henry Rotich.
The review may dilute KLM’s stake, Rotich said.. .