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 email@example.com
To contact the editor responsible for this story: Shaji Mathew at firstname.lastname@example.org