Lafarge Cement WAPCO Nigeria Plc (WAPCO), the second-biggest producer of the material by market value, declined the most in more than four years after its announced dividend was less than expected, said Kundila Finance Ltd.
The stock fell for a second day, declining 5.4 percent to 70 naira by the close in Lagos, Nigeria’s commercial capital. That’s the biggest drop since Oct. 31, 2008 and the lowest price in almost two weeks, according to data compiled by Bloomberg.
Lafarge will pay a dividend of 1.20 naira a share for 2012, the company said in a statement released at the stock exchange in Lagos today. While that’s higher than last year’s payment of 75 kobo, it misses Kundila’s outlook of 2.50 naira or more, said Chief Executive Officer Raheem Mohammed.
“Investors are dissatisfied with the proposed divided on the ground that it offers very low return on investment,” he said by phone from Lagos today.
The company is yet to announce its full-year results. Profit for the nine months through September rose to 10.8 billion naira ($68 million) from 10.7 billion naira a year earlier, it said on Oct. 30. Revenue rose to 69.8 billion naira from 69.2 billion naira.
The stock has risen 20 percent this year, matching the gain in the Nigerian Stock Exchange All-Share Index. (NGSEINDX)
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