March 18 (Bloomberg) -- Safaricom Ltd., Kenya’s biggest mobile-phone company, fell the most in seven weeks on a technical signal that indicated the stock was overbought.
The shares dropped 2.4 percent, the biggest one-day decline since Jan. 28, to 6 shillings by the 3 p.m. close in the capital, Nairobi. There were almost 18.6 million securities traded, 129 percent of the three-month daily average.
Safaricom reached a record high of 6.30 shillings on March 14, pushing the Nairobi-based company’s 14-day relative strength index to 82.8, above the 70 level which some analysts consider as overvalued. The stock had advanced 22 percent this year through March 15, compared with a 19.4 percent rise in the Nairobi Securities Exchange All-Share Index.
“There is a price adjustment because of the rally,” Halima Saadia, a research analyst at Nairobi-based Old Mutual Securities Ltd., said by phone today.
To contact the reporter on this story: Eric Ombok in Nairobi at firstname.lastname@example.org
To contact the editor responsible for this story: Shaji Mathew at email@example.com