Nestle Foods Nigeria Plc, the West African nation’s largest food company by market value, jumped to its highest level in more than 10 years on investors’ expectations the company’s products are in strong demand.
The stock increased by the maximum daily limit of 5 percent to 463.61 naira at the close in Lagos, the commercial capital, the most since January 2002. It is up 4 percent this year, compared with a 1.7 percent rise in the Nigerian Stock Exchange All-Share Index, according to data compiled by Bloomberg.
“Nestle has delivered strong returns, has a good corporate governance and a strong growth in demand over the next five years,” Akinbamidele Akintola, a research analyst with Lagos-based Renaissance Capital, said by phone today.
More than 1 million shares, or six times the three-month average, traded today. Nestle Foods, a unit of Nestle SA, the world’s biggest food company, said last year it plans to double business in Africa’s most populous country of more than 167 million people within three years. Nigeria is Nestle’s second-biggest market in the continent after South Africa.