Dangote Cement Jumps Most on Record on Profit Bets: Lagos MoverEmele Onu
Dangote Cement Plc jumped the most on record as investors speculated Nigeria’s biggest company by market value will increase full-year profit.
The stock rose 8.9 percent to 160 naira by 2 p.m. in Lagos, its biggest advance since at least Oct. 26, 2010. The company is scheduled to release financial results next month.
“Investors are beginning to take position as they anticipate wonderful performance in full year, in line with trend in the third quarter,” Kola Yaqub, a Lagos-based analyst at Meristem Securities Ltd., said by phone today. “The stock is trading at fair value and we’ll issue a price target after the result is released.”
Dangote’s net income for the first nine months of 2012 increased 15 percent to 106.5 billion naira, according to the company. Revenue advanced to 208.3 billion naira from 173.8 billion naira.
The company said Feb. 1 it reopened its Gboko plant located in central Nigeria on increasing demand. Dangote had closed the plant last month because of cheaper imported cement being sold in the region.
Dangote, Africa’s biggest producer of cement and owned by billionaire Chairman Aliko Dangote, forecast in August it will more than double total output to 51 million metric tons by 2015 as it expands production.
The stock has advanced 24.9 percent this year, compared with the 20 percent rise of the Nigerian Stock Exchange All-Share Index.