Centum Heads for Biggest Decline in Six Weeks: Nairobi MoverEric Ombok
Centum Investment Co., Kenya’s largest publicly traded investment group, fell the most in six weeks as a technical indicator showed it may have risen too far.
The stock slid for a second day, declining 6.4 percent to 19.90 shillings by 12:27 p.m. in the capital, Nairobi, the biggest decline on a closing basis since Feb. 20. About 48 percent of the three-month daily average of shares traded.
Centum had a 10-day rally that pushed its 14-day relative strength index to 85 on April 2, according to data compiled by Bloomberg. A reading above 70 signals that the stock is poised to fall. The company’s RSI has been above 70 since March 26.
“Before it started falling yesterday it had actually risen 74 percent from the start of the year so investors are taking profit,” Faith Atiti, a research analyst at Nairobi-based NIC Securities Ltd., said by phone.
Shares in the company that invests in banks, breweries and food processing have climbed 61 percent since the start of the year, the eighth-best performing Kenyan stock, outpacing the 28 percent gain on the Nairobi Securities Exchange All-Share Index.