Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Best Kenyan Stock Drops as Centum Seen Overbought: Nairobi Mover

Aug. 19 (Bloomberg) -- Centum Investment Co., Kenya’s best performing stock this year, declined for the first time in 16 days on a technical signal that indicates the investment company is overbought and poised to fall.

Shares of the Nairobi-based company, which invests in banks, breweries and food processing businesses, dropped 1.9 percent to 25.25 shillings, the biggest one-day decrease since July 1. The stock has more than doubled this year compared with a 31 percent increase in the FTSE NSE Kenya 25 Index.

A four-day rally pushed Centum’s relative strength index to 83 points on Aug. 16, the highest since April 2 and above the 70 level which indicates an asset may weaken for a sixth day. The RSI last traded at 72.

Some investors are using the share-price gains to book profits, Faith Atiti, an analyst at Nairobi-based NIC Securities Ltd., said by phone. Centum’s earnings jumped to 2.51 billion shillings ($28.7 million) in the 12 months through March from 1.19 billion shillings a year earlier, the company said June 5.

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

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.