RMI Holdings Ltd., a South African investor in insurance companies, fell after Bank of America cut its recommendation to underperform from neutral.
The stock declined as much as 4.3 percent, the most in a month on an intra-day basis, to 21.85 rand and traded at 22.05 rand at 12:25 p.m. in Johannesburg. About 1.1 million shares, or 61 percent of the daily average over the last three months, changed hands.
“The stock has been doing very good this year,” Ryan Wibberley, a trader at Investec Asset Management, said by phone from Cape Town. “The cut has given investors cause to lock in some profits.”
RMI, which has stakes in short-term insurer OUTsurance Holdings Ltd. and medical insurer, Discovery Holdings Ltd., gained 69 percent since the start of the year, making it the third-best performer in the 50-member FTSE/JSE Africa Financials Index.