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Britam of Kenya Climbs Most in 3 Weeks on Outlook: Nairobi Mover

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Feb. 27 (Bloomberg) -- British-American Investments Co., a Kenyan financial-services group advanced the most in more than three weeks as investors bet the company made a profit and will pay a higher dividend.

Shares of Britam, as the company is known, climbed a second day, rising 3 percent to 6.80 shillings by the 3 p.m. close in the capital, Nairobi, the biggest gain since Feb. 1, according to data compiled by Bloomberg. About 489,600 shares traded, or more than double the three-month daily average.

Investors “are optimistic that the company will post better results and pay a higher dividend than the 15 cents in 2011 when they made a loss,” Augustine Misoka, a research analyst at Nairobi-based Sterling Capital Ltd., said in a phone interview today.

Net income is estimated at about 2.5 billion shillings ($29 million) in the 12 months through December compared with a loss of 197.7 million shillings a year earlier, Misoka said.

The company swung to a profit of 1.68 billion shillings in the six months through June after investment income surged fivefold.

Britam was rated buy in new coverage by Sterling Capital on Feb. 21 with a price target of 7.58 shillings. The stock was also rated buy in new coverage at Standard Investment Bank Ltd. on Jan. 30 with an 8.32-shilling target.

Britam’s stock has advanced 13 percent this year, outpacing an 11 percent gain in the Nairobi Securities Exchange All-Share Index.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

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