British American Investment Co. (BRIT), a diversified financial services group, fell the most in more than three months on concern its earnings will suffer from a plunge in the Kenyan stock market last year.
Shares in the company, which was listed on Sept. 9, 2011, slumped as much as 9.9 percent to 5 shillings and closed down 8.1 percent, the most since Sept. 15, at 5.1 shillings as of 3 p.m. in Nairobi, the capital. The maximum daily limit on a stock’s move is 10 percent.
“In 2011 the earnings per share will be down by about 50 percent,” George Bodo, an equity strategist at Nairobi-based Apex Africa Capital Ltd., said by phone today. “Everyone in the market has factored in the risk that these guys have a huge exposure to the capital markets; that is why the market has assigned a discount to the stock.”
The Kenyan stock market, the second-worst performer in Africa after Egypt, plunged 30 percent (NSEASI) in 2011 as drought drove inflation, hurting consumer spending and corporate profits in east Africa’s biggest economy.
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