The stock rose 5.6 percent to 22.19 naira at the close in Lagos, Nigeria’s commercial capital, its biggest gain since Jan. 9. At least 1.38 million shares, more than double the three month daily average, were traded, according to data compiled by Bloomberg.
Ashaka’s current price-to-earnings ratio of 12.73 percent, is lower than that of Dangote Cement Plc (DANGCEM), the country’s biggest company by market value, at 22.40 percent and Lafarge Cement WAPCO (WAPCO) Plc, another Lafarge unit, at 19.79 percent, according to data compiled by Lagos-based Sterling Capital Ltd.
“Investors are attracted to Ashaka Cement at the current valuation believing it will appreciate further,” Austin Eseha, an analyst at Lagos-based Partnership Investments, said today in a telephone interview. “We put a target of 26 naira on the stock.”
Ashaka Cement has risen 24 percent this year compared with a 18 percent gain of the Nigerian Stock Exchange All-Share Index. (NGSEINDX) Dangote Cement rose 0.6 percent to 140.89 naira, extending gains this year to 10 percent, while Larfarge advanced 3.6 percent to 74 naira, extending its gains this year to 26 percent.
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