NIC Bank Ltd. (NICB), the best-performing stock among Kenyan lenders last year, headed for the biggest drop in more than 15 months as some investors took profit.
Shares in the Nairobi-based lender plunged as much as 7.8 percent to 41.25 shillings and traded 5 percent lower at 41.75 shillings by 12:55 p.m. in the capital, Nairobi. A close at that level would be the largest decline since March 22, 2012. About 32,500 shares traded, or 21 percent of the three-month daily average, according to data compiled by Bloomberg.
“Considering the company’s share price almost doubled last year, guys are taking the gains made,” Francis Mwangi, head of research at Nairobi-based Standard Investment Bank Ltd., said by phone today. “Our fair value is 45.39 shillings so even at the current price it is a hold recommendation on our side.”
NIC shares rallied 93 percent last year, outpacing a 39 percent surge on the Nairobi Securities Exchange All-Share Index last year. The stock has climbed 11 percent this year.
Net income in the nine months through September advanced to 2.4 billion shillings ($27.4 million) from 1.77 billion shillings a year earlier, NIC said on Nov. 22. Net interest income, the money banks make from loans, grew 34 percent to 3.99 billion shillings.
To contact the reporter on this story: Eric Ombok in Nairobi at firstname.lastname@example.org
To contact the editor responsible for this story: Shaji Mathew at email@example.com