Britam Surges to Record on Outlook for Profit: Nairobi Mover
British-American Investments Co. (BRIT), a Kenyan financial-services group, rallied to a record high on speculation profit the company will report a profit for 2012 compared with a year-earlier loss.
Shares of Britam, as the company is known, climbed 6.2 percent to 8.55 shillings by 2 p.m. in the capital, Nairobi, the highest since Sept. 9, 2011, when the stock was listed, according to data compiled by Bloomberg.
The shares advanced for an eighth day and about 373,000 were traded, or 32 percent more than the three-month daily average volume.
“There is a lot of speculation in Britam in anticipation of their results,” Faith Atiti, a research analyst at Nairobi- based NIC Securities Ltd., said in an e-mailed response to questions. The company’s profit may be as 2 billion shillings ($23 million) for 2012, according to NIC.
The outlook is mainly driven by expectations of gains on equity investments and the company may pay dividends, Atiti said. It hasn’t given a date for when its earnings will be announced.
Britam’s shares have surged 43 percent this year, outpacing a 16 percent jump in the Nairobi Securities Exchange All-Share Index. (NSEASI) Britam was rated a buy in new coverage at Standard Investment Bank on Jan. 30 with a price estimate of 8.32 shillings.
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