May 9 (Bloomberg) -- PZ Cussons Nigeria Plc, a consumer products manufacturer, rose to the highest in more than three weeks on investor bets that it will declare a dividend for its fiscal year, which ends this month, PAC Securities Ltd. said.
The stock rose by the daily limit of 5 percent to 23.20 naira as of 1:21 p.m. in Lagos, the commercial capital, the highest since April 16.
“We are expecting that PZ will declare a reward in the form of dividends, so investors are taking position now,” Eugene Ezenwa, chief operating officer of Lagos-based PAC, said by phone today. “The stock has been trading at a resistance point of about 21 naira for some time now, but it is trying to break off from that point as a result of the expectations,” he said.
The stock could rise as high as 25 naira in the next month, depending on the timing of the release of PZ’s results and corporate action, he added.
Net income for the nine months through February fell to 666.9 million naira ($352 million), from 3.8 billion naira a year earlier, the company said April 18.
PZ Cussons’ price has fallen 17 percent this year, compared with a 9.4 percent rise in the Nigerian Stock Exchange All-Share Index over the same period.
To contact the reporter on this story: Vincent Nwanma in Lagos at firstname.lastname@example.org
To contact the editor responsible for this story: Dulue Mbachu at email@example.com