Kenya Airways shares ticked up +8.33% on Wednesday, reaching a new high for 2016 as the Airline confirmed that former Safaricom CEO Michael Joseph had been appointed as the new chairman.
KQ’s stock price nudged over Ksh 5.25 per share for the first time since November 11, 2015 and traded nearly two million shares during the day’s session. The new high for the year also marks a great month for the investors who have enjoyed a 59.1% stock rise over the last one month. On September 20th, Kenya Airways shares traded at only Ksh 3.30 per share as shown in the chart below.
According to Alykhan Satchu, “Kenya Airways is reaping a ”Michael Joseph” dividend.” Mr Satchu argues that “KQ stock is rebounding on the basis that Mr. Joseph has the bona fides to secure the long term Funding and Future of the Pride of Africa.”
The stock movement also corresponds with the news that Kenya Airline Pilots Association (KALPA) had called off a strike earlier scheduled to kick off on Tuesday after a fruitful discussions with the Government and the airline’s management.
Meanwhile on a random walk through the latest investor returns, we spotted two foreign institutional investors who recently acquired 0.19% stake in in the airline. Parametric Portofolio Associates LLC is a leading global asset management firm headquartered in Seattle,Washington. In late July, the fund bought 2.4 million shares of KQ representing a 0.16% stake in the airline. Boston Research & Management also bought approximately four hundred thousand shares in KQ on August 31st.
The airline will next week on Thursday 27th Oct release it half year results.