Nov. 29 (Bloomberg) -- Julius Berger Nigeria Plc, the country’s biggest construction company, rose to the highest in almost six months on demand from institutional investors, Lambeth Trust and Investment Co. said.
The stock gained 4.8 percent to 33 naira by the close in Lagos, Nigeria’s commercial capital, the highest since Jun. 1. About 192,000 shares, 27 percent of the three-month daily average, changed hands, according to data compiled by Bloomberg.
Institutional investors are interested in the stock because Julius Berger “is getting more jobs,” David Adonri, chief executive officer of Lagos-based Lambeth, said by phone. “Demand for the stock is five times the supply.”
The government on Nov. 19 awarded Julius Berger, a unit of Germany’s Bilfinger Berger AG, and RCC Nigeria Ltd. a contract to rebuild the 125-kilometer Lagos-Ibadan Expressway, the country’s busiest road in the southwest, the Punch newspaper said on Nov. 20. Julius Berger won a contract to rebuild the United Nations Building in Abuja, Nigeria’s capital, at a cost of 5.1 billion naira ($32 million), ThisDay newspaper reported on Nov. 22.
Investors’ expectations on Julius Berger “are very high” after winning the contracts, Raheem Mohammed, chief operating officer of Kundila Finance Ltd., said by phone from Lagos. “We expect the stock to rise to 50 naira before the release of the full-year result early next year.”
Nine-month profit rose to 3.79 billion naira from 2.74 billion naira, the company said on Nov. 6.
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