Chemical & Allied Nigeria Heads for Record High on ProfitAmbrose Akor
Chemical & Allied Products Plc, a Nigerian paints and house-hold goods manufacturer, headed for its highest on record after announcing a dividend and bonus shares.
The company advanced 9.9 percent to 46.8 naira as of 1:14 p.m. in Lagos, the commercial capital. A close at this price would be the highest since at least Feb. 5, 2002, when Bloomberg started compiling data on the stock.
Net income climbed to 1.1 billion naira ($6.9 million) from 1 billion naira a year earlier, the Lagos-based company said today in a statement published on the website of the Nigerian Stock Exchange. Revenue rose 21 percent to 5.2 billion naira. Shareholders will receive a dividend of 70 kobo per share and a bonus of one share for every four held, the company said.
The gains made by the stock are “related to the very strong results announced, which is in line with our expectations,” Tomi Benn-Gii, a Lagos-based analyst at Standard Bank Securities, said in a phone interview. The proposed dividend and bonus “are also having a positive impact on trading on its shares.”
CAP, as the company is known, has added 67 percent this year, compared with a 19 percent increase in the Nigerian Stock Exchange All-Share Index.