Kenya Power Ltd., the east African nation’s sole electricity distributor, declined for a third day in Nairobi ahead of an issue of bonus shares.
The stock fell as much as 1.5 percent to 16 shillings and traded 1.2 percent lower at 16.05 shillings as of 1:39 p.m. A close at that level would be the lowest since Dec. 22, according to data compiled by Bloomberg. The stock has dropped 8.6 percent this year.
“When you expect shares to come to the market you expect the dilutive effect; the market is front running on that,” George Bodo, an equity strategist at Nairobi-based Apex Africa Capital Ltd., said by phone today. “The market cannot find positive information to push the stock up.”
Investors have until Feb. 28 to buy stock in the company so that they are eligible for a one-for-eight bonus share offer, according to data from the Nairobi Securities Exchange.