Bloomberg News

NIC Bank of Kenya Jumps to 2-Week High on Rating: Nairobi Mover

June 06, 2012

NIC Bank Ltd., (NICB) a Kenyan lender, jumped to a two-week high after an independent analyst recommended buying the shares.

The stock climbed 0.7 percent to 35 shillings by the end of trading in Nairobi, the highest close since May 23. The volume of shares traded was more than 20 times the three-month average, according to data compiled by Bloomberg.

NIC trades at a price-to-earnings ratio of 5.21 compared with peers such as Diamond Trust Bank Kenya (DTKL) Ltd., which has a ratio of 7.22, according to data compiled by Bloomberg. The bank was rated buy with a target price of 47 shillings on June 4 by Davis Mika, a Nairobi-based independent analyst.

“The stock is trading on very low valuation,” Mika said in a phone interview today. “It is cheap compared to its peers and investors should get the stock at the moment.”

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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