Britam of Kenya Climbs Most in 3 Weeks on Outlook: Nairobi Mover
British-American Investments Co. (BRIT), a Kenyan financial-services group advanced the most in more than three weeks as investors bet the company made a profit and will pay a higher dividend.
Shares of Britam, as the company is known, climbed a second day, rising 3 percent to 6.80 shillings by the 3 p.m. close in the capital, Nairobi, the biggest gain since Feb. 1, according to data compiled by Bloomberg. About 489,600 shares traded, or more than double the three-month daily average.
Investors “are optimistic that the company will post better results and pay a higher dividend than the 15 cents in 2011 when they made a loss,” Augustine Misoka, a research analyst at Nairobi-based Sterling Capital Ltd., said in a phone interview today.
Net income is estimated at about 2.5 billion shillings ($29 million) in the 12 months through December compared with a loss of 197.7 million shillings a year earlier, Misoka said.
The company swung to a profit of 1.68 billion shillings in the six months through June after investment income surged fivefold.
Britam was rated buy in new coverage by Sterling Capital on Feb. 21 with a price target of 7.58 shillings. The stock was also rated buy in new coverage at Standard Investment Bank Ltd. on Jan. 30 with an 8.32-shilling target.
Britam’s stock has advanced 13 percent this year, outpacing an 11 percent gain in the Nairobi Securities Exchange All-Share Index. (NSEASI)
To contact the reporter on this story: Eric Ombok in Nairobi at email@example.com
To contact the editor responsible for this story: Vernon Wessels at firstname.lastname@example.org