Jubilee Holdings Ltd., Kenya’s biggest insurer by market value, fell to the lowest in almost two weeks after a proposed one-for-10 bonus share issue fell short of investors’ expectations, Sterling Capital Ltd. said.
The stock dropped as much as 7.6 percent, and closed 3.3 percent lower at 178 shillings in Nairobi, the capital. That’s the weakest level since March 19, according to data compiled by Bloomberg.
Jubilee’s board of directors proposed a bonus offer of one share for every 10 held, the company said in a statement today. Investors had expected a bigger allocation, which would have boosted liquidity in the stock, Eva Njuguna, a trader at Nairobi-based Sterling, said by phone from Nairobi today.
“There was over-anticipation before the results; investors expected a bigger bonus share,” she said.