Equity Bank Ltd., Kenya’s biggest lender by customers, declined to its lowest level in a month on bets its gain this year is overdone.
The stock fell for a third day, trading 3.7 percent lower at 32.75 shillings by the close in the capital, Nairobi, the lowest since May 14. More than 2.1 million shares were traded, equal to 1.2 times the three-month daily average.
Equity Bank shares rallied 38 percent this year, pushing its relative-strength index above 70 last month, indicating the stock was overbought. The gauge plummeted to 37.5 today as the lender’s shares stretched their June decline to 8.3 percent, the third-worst performer on the Nairobi Securities Exchange All Share Index in the month.
“Most investors are considering the stock to be overbought after the recent rally,” Ted Macharia, an analyst at Nairobi-based AIB Capital Ltd., said in a phone interview.
Equity Bank jumped after the lender said on May 6 net income in the first three months of the year climbed 22 percent to 3.21 billion shillings ($38 million), the highest profit in the period among its Kenyan peers, according to data compiled by Bloomberg.
To contact the reporter on this story: Eric Ombok in Nairobi at firstname.lastname@example.org
To contact the editor responsible for this story: Vernon Wessels at email@example.com