Bloomberg News

British-American of Kenya Advances on Stock Market Rally

April 16, 2012

British-American Investments Co. (BRIT), a Kenyan company that owns money managers and insurance businesses, headed for its biggest gain this year as share prices improved for companies it’s invested in.

The stock jumped 6 percent, the biggest one-day advance since Dec. 30, to 4.45 shillings by 1:53 p.m. in Nairobi, the capital.

British American reported a full-year pretax loss of 1.7 billion shillings ($20.4 million), compared with year-earlier profit of 2.7 billion shillings, it said last month, citing the “poor” performance of the stock market in 2011. The Nairobi Securities Exchange All Share Index (NSEASI) is up 12 percent this year, having plunged 30 percent in 2011.

“All the bad news is already out there” for the company, Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said in a phone interview today. “We expect them to benefit from the current rally in some of the counters they have invested in like Equity Bank Ltd. (EQBNK) and Housing Finance Ltd. (HFCL)”

The two companies have gained 22 percent and 19 percent respectively this year, according to data compiled by Bloomberg.

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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