Ashaka Cement Nigeria Gains Most in 3 Weeks After Profit Surge

Ashaka Cement Plc (ASHAKACE), a Nigerian unit of Lafarge SA (LG), advanced the most in almost three weeks after reporting a 50 percent jump in third-quarter profit.

The stock gained 5 percent to 17.91 naira at the close in Lagos, Nigeria’s commercial capital, the most since Oct. 10. More than 500,000 shares changed hands, about 44 percent of the three-month daily average, according to data compiled by Bloomberg. The stock has risen 59 percent this year, compared with a 29 percent rally in the Nigerian Stock Exchange All-Share Index.

Net income for the period through September rose to 3.7 billion naira ($23.6 million) from 2.46 billion naira a year earlier, the Gombe, northern Nigeria-based company said yesterday. Revenue rose to 16.5 billion naira from 15.8 billion naira.

“The stock is on full bid because of the impressive third- quarter result,” David Adonri, chief executive officer of Lambeth Trust and Investment Co. Ltd., said by phone from Lagos today.

Ashaka’s earnings were buoyed by “other incomes” of 1.9 billion naira, “which we believe is largely from interest on the company’s healthy cash position,” Pabina Yinkere, head of research at Vetiva Capital Management Ltd, wrote in an e-mailed note today. Profit was in line with Vetiva’s estimates, according to Yinkere.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net.

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.