Cadbury Nigeria Plc, a manufacturer of drinks and food products, climbed the most in almost six months after gaining by the daily limit as investors bet its price will rise.
The stock gained 55 kobo, or the daily maximum limit of 5 percent, to 11:55 naira at the close, the biggest gain since Oct. 5 and the highest value since Jan. 20.
“Investors are betting that the value of the stock is currently too low, and that it will rise,” David Adonri, chief executive officer of Lambeth Trust and Investment Co. Ltd., said by phone from Lagos. “Investors are optimistic about the future of the company, not necessarily the present.” Cadbury may pay a dividend with a yield of about 2 percent, he said.
Cadbury forecast a 60 percent increase in net income to 339.2 million naira ($2.2 million) for the first quarter, it said on Dec. 6. Pretax profit was seen at 470.5 million naira for the period while revenue was estimated at 8.73 billion naira, the Lagos-based company said. The company returned to profit in 2010, after a loss in the preceding year.