CIC Insurance of Kenya Jumps to Record on Profit: Nairobi MoverEric Ombok
CIC Insurance Group Ltd., Kenya’s second-biggest insurer by premiums, jumped to the highest on record on bets 2012 profit grew as much as 54 percent, according to Sterling Capital Ltd.
The shares surged 9.4 percent to 5.25 shillings by 12:15 p.m. in the capital, Nairobi, the highest level since July 19, according to data compiled by Bloomberg. About 57 percent of the three-month daily average volume of shares was traded.
“Trading is based on speculation by investors on anticipation of a results announcement this week or next week,” Augustine Misoka, a research analyst at Nairobi-based Sterling Capital, said by phone today. Net income may rise to 900 million shillings ($10.5 million) from 584 million shillings a year earlier, he said. “Micro insurance is the main driver of profit.”
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.
CIC’s stock has rallied 48 percent this year, outpacing an 18 percent advance by the Nairobi Securities Exchange All-Share Index.