Kenya Reinsurance Corp. (KNRE), the state- owned reinsurer, fell a second day after a technical signal indicated the stock’s gain was overdone.
Kenya Re, as the stock is known, slumped 5.7 percent to 12.35 shilling by the close in Nairobi, the biggest one-day retreat since Feb. 6. The shares slipped 0.8 percent on Friday after advancing 6 percent to 13.2 shillings on May 17, the strongest level in more than two years, touching 95.7 on the Relative Strength Index. A reading of more than 70 serves as a signal to some technical analysts a security is overvalued and set for a reversal.
The stock has catapulted 54 percent since April 23, making it the second-best performer this year, outpacing the NSE All Share Index, which jumped 19 percent.
The company said April 23 net income climbed to 1.91 billion shillings ($22.6 million) from 1.54 billion shillings a year earlier. Net earned premiums rose to 5.7 billion shillings from 4.3 billion in 2010. The reinsurer plans to offer a bonus of one share for every six held and a dividend of 0.35 shilling per share.
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