Investors tiptoe back to CIC counter after wiping out Sh3.5bn on profit warning day

Key Takeaways

• CIC Insurance Group Plc issued a 'surprise profit warning', forecasting at least a 25 per cent drop in 2025 net profit due to non-recurring land revaluation gains and elevated insurance claims.
• The warning triggered a 'dramatic sell-off' at the Nairobi Securities Exchange, wiping out an estimated 'Sh3.5 billion' from CIC's market capitalisation and causing a '17.9 per cent plunge' in its share price.
• After hitting an 'all-time low', CIC's share price has started to recover, attracting 'bargain hunters' and recording increased trading volumes.
• The market volatility was reportedly compounded by the proliferation of new mobile trading platforms like the 'Ziidi Trader app'.