British American Investment Falls on Lagging Kenya Stocks

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.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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