Jan. 11 (Bloomberg) -- ARM Cement Ltd., Kenya’s second-biggest maker of the building material, advanced for a third day to a record high after a share split by the company.
The stock surged as much as 9.1 percent to 60 shillings in the capital, Nairobi, and pared the gain to 1.8 percent or 56 shillings by the 3 p.m. close. More than 286,000 shares trade, almost double the three-month daily average.
ARM, formerly known as Athi River Mining Ltd., proposed the five-for-one share split last year and it came into effect Dec. 24. The stock has climbed 32 percent this year, compared with a 6.5 percent advance for the benchmark NSE All-Share Index.
“It is being driven by the five-for-one split,” Aly Khan Satchu, chief executive officer of Nairobi-based investment company Rich Management Ltd., said in a phone interview today. “It is partly a bull market and partly by the fact that it has become more affordable for retail investors.”
Net income climbed to 826.5 million shillings ($9.5 million) in the nine months through September from 193 million shillings a year earlier, the Nairobi-based company said in October. Revenue jumped 29 percent to 7.74 billion shillings, ARM said.
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