Presco Nigeria Jumps Most in Six Months on Dividend Plan
Stock Chart for Presco PLC (PRESCO)
Presco Plc (PRESCO), a Nigerian palm-oil producer, jumped the most in almost six months after saying it would pay a dividend for 2011.
Presco will pay a dividend of 1 naira per share, it said in a Nigerian Stock Exchange statement distributed today by GTB Asset Management Ltd. Company results are first delivered to traders by the Nigerian bourse before being distributed to the public.
The stock rose by the daily limit of 5 percent to 10.50 naira by the close in Lagos, the biggest daily advance since Oct. 4. Speculation that the company would announce a payout had pushed the shares up earlier in the day.
“Investors believe the company will pay a dividend, that’s what is driving it,” Raheem Mohammed, chief operating officer of Kundila, said by phone from Lagos today, before the payout was announced. “Presco has earnings per share of 1.50 naira so the most it can pay is about 1 naira.”
A 10 percent payout is typical for Nigerian companies, according to Mohammed.
Presco stock has surged 21 percent this year, outperforming the 0.1 percent rise in the Nigerian Stock Exchange All-Share Index.
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