Dangote Flour Mills Plc, a Nigerian producer, rose to the highest in more than a year after gaining for a third day, as investors speculated it could be among the next set of stocks to be included for market-making activities.
The stock gained 4.8 percent to 8.08 naira at the close in Lagos, its highest since Sept. 6, 2011.
The Nigerian Stock Exchange chose 16 stocks as trial securities and 10 primary market-makers on Sept. 18 for a program designed to improve liquidity. It raised daily trading limits on the selected stocks from 5 percent, which still applies to other equities, to 10 percent. The next set of stocks for market making will be announced within a month, Raheem Mohammed, chief operating officer of Kundila Finance Ltd., said by phone today.
“Investors are speculating that Dangote Flour will be among them and that’s why they are taking position on the stock now,” he said. Dangote Flour is “one of the most liquid” stocks on the Nigerian bourse, he said.