Ellies Holdings: Eskom blackouts benefit the group

SHARES in JSE-listed Ellies Holdings rallied yesterday by as much as 29 percent on speculation that the company would benefit from Eskom’s power cuts. Ellies shares soared 12.4 percent to close at R1.45 yesterday and reached a daily high of R1.67. “It looks like Ellies is up on speculation that the company will sell more generators as a result of Eskom’s problems,” a JSE broker said. Since the start of November, Eskom has been cutting back on power, which has had a negative effect on ordinary consumers as well as business. These power cuts are boosting the sales of diesel generators and renewable energy sources, which do not rely on the parastatal. This is a positive for Ellies as the company sells and installs diesel generators and has interests in renewable energy. – Staff Reporter