Why Kenya Airways shares rose 148% in May

Kenya Airways PLC (KQ) shares jumped 148% in May to close at Ksh2.21, becoming the top stock for the month. The company runs airline business and operates in both passenger and cargo transportation segments.

Notably, Kenya Airways shares soared last month despite the company sinking deep in the red. On May 26, the airline reported a loss of Ksh13 billion for 2019, which ballooned from Ksh7.6 billion loss in 2018 as it faced rising costs.

It appears investors piled into Kenya Airways stock last month on growing hopes the government will rescue the company.

The government, the largest shareholder in Kenya Airways with 49% stake, plans to take over the company in a move that would see it buy out the other investors. The legislation that would guide government takeover of Kenya Airways is expected to be ready by August, the Daily Nation reports.