(Updates with analyst comments in third paragraph.)
Feb. 15 (Bloomberg) -- United Bank for Africa Plc, a Nigerian lender with operations in 19 countries, gained the most in seven weeks as investors bet its price decline has been overdone, PAC Securities Ltd. said.
The stock rallied 4.9 percent, the biggest daily increase since Dec. 23, to 1.72 naira by the 2:30 p.m. close in Lagos. The stock reached the lowest since October 2003 on Feb. 13.
“At this price, it cannot go down further, it can only go up and in the next six months it could double,” Eugene Ezenwa, chief operating officer of Lagos-based PAC Securities, said by phone today. “This should be the least price you can get for such a big bank.”
About 112 million shares, 238 percent of the three-month daily average, traded today, according to data compiled by Bloomberg. The stock has declined 34 percent this year, compared with a 2 percent decline in the Nigerian Stock Exchange All- Share Index over the same period.
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