Bloomberg News

Centum of Kenya Falls to 19-Month Low on Profit-Drop Concern

November 27, 2011

(Update with closing share price in second paragraph.)

Nov. 25 (Bloomberg) -- Centum Investment Co., East Africa’s biggest publicly traded investment company, fell to a 19-month low on concern a decline in Kenyan stock prices will crimp earnings.

The shares retreated for a seventh day, losing 2.5 percent to 13.65 shillings by the 3:00 p.m. close in Nairobi, the longest losing streak since Sept. 2. Kenya’s benchmark NSE 20 Index of stocks, sub-Saharan Africa’s worst performer after Uganda’s gauge this year, has lost 26 percent this year, according to data compiled by Bloomberg.

“Centum’s full-year earnings will suffer just like they did in the half year, given how the equities market is performing,” Alistair Gould, head of trading and business development at Nairobi-based Old Mutual Securities Ltd., said by phone today.

The company’s profit declined 6.3 percent in the first half as share prices fell, according to results released on Nov. 9.

--Editors: Ash Kumar, Linda Shen

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


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