Feb. 1 (Bloomberg) -- British-American Investments Co., a Kenyan financial-services group, extended its gains for a fourth day and surged to the highest in 16 months after it was rated buy in new coverage by Standard Investment Bank Ltd.
Shares of Britam, as the company is known, climbed 3.2 percent to 6.50 shillings by the 3 p.m. close in the capital, Nairobi, the highest since Sept. 27, 2011. The stock became publicly traded on Sept. 8, 2011, according to data compiled by Bloomberg. About 516,000 shares traded, or 202 percent of the three-month daily average volume.
Britam was rated a buy in new coverage at Standard Investment Bank on Jan. 30 with a price target of 8.32 shillings.
“I do concur with them that Britam is fully priced at the level of 8.30 shillings,” Moses Waireri, a research analyst at Nairobi-based Genghis Capital Ltd. said by telephone. “Investors are also trading with the knowledge that the good performance of the stock exchange last year will help the company’s earnings.”
Kenyan stocks, the worst performers in sub-Saharan Africa in 2011, were the best last year as the central bank reined in inflation and spurred a rally in the shilling. The Nairobi Securities Exchange All-Share Index surged 39 percent in 2012, according to data compiled by Bloomberg.
Britam’s stock has advanced 12 percent this year, outpacing the 9 percent gain on the Nairobi Securities Exchange All-Share Index, according to data compiled by Bloomberg.
The company swung to a profit of 1.68 billion shillings ($19.2 million) in the six months through June after investment income surged fivefold. It lost 197.7 million shillings a year earlier.
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