April 27 (Bloomberg) -- British-American Investments Co., a Kenyan company which owns money managers and insurance businesses, dropped the most since January after a technical signal indicated the stock was poised to fall.
The stock declined 6.8 percent, the most since Jan. 4, to 4.80 shillings by the 3 p.m. close in Nairobi, the capital.
An eight-day rally between April 16 and 25 pushed the stock 20 percent higher, leaving the 14-day relative strength index at 83.19 on April 25, according to data compiled by Bloomberg. A reading above 70 means a security is overvalued and will probably fall. British American’s RSI has been above 70 since April 18.
“It is coming off because if you look at the counters that have gained of late, we are seeing some profit taking,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said in a phone interview today.
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