Shares of Kenya Airways, one of Africa’s leading airlines, rose on news of the exit of Virgin Atlantic from Kenya by September, due to low passenger numbers and high fuel costs.
Analysts said foreign buyers had helped the stock rally to a two-month high last seen March 13. Kenya Airways shares were the biggest gainer on the bourse, although volumes traded were low compared to the usual turnover.
“The rally may have been triggered by news of Virgin Atlantic’s exit,” said Joy Migongo, analyst at Kestrel Capital.
“It means people who were using Virgin may switch to Kenya Airways, but at the end of the day, there is a lot of competition in the aviation sector, and that may dilute this information.”