Updated
Updated · Bloomberg · Jun 11
Union Dicon Salt Shares Surge 250% as Speculators Chase Idle Nigerian Factory
Updated
Updated · Bloomberg · Jun 11

Union Dicon Salt Shares Surge 250% as Speculators Chase Idle Nigerian Factory

1 articles · Updated · Bloomberg · Jun 11

Summary

  • Union Dicon Salt has jumped almost 250% this year, placing the moribund company among Nigeria’s 10 best-performing stocks.
  • Small-time speculators have been buying the shares in droves, driving a rally that even Union Dicon executives say they cannot explain.
  • The surge has come despite the salt factory in Abuja sitting largely idle for most of the past two decades.
  • Losses have continued to mount and the company’s largest shareholder has seemingly disappeared, underscoring the disconnect between its market value and operating reality.

Insights

Why is a defunct salt company, facing delisting, suddenly one of Nigeria's top stocks?
In an economy with 26% inflation, is gambling on zombie stocks a rational choice?