The prevailing sell-offs on the Nigerian Stock Exchange has extended the loss in the share price of key FMCG companies as well as their market capitalization on the Nigerian Stock Exchange.
Data tracked on the NSE website from the close of trade on the 3rd of March till the close of trading activities on the local bourse on the 4th of March 2021, revealed that the market capitalization of these FMCG companies declined by N15.2 billion in a single day.
FMCG companies declined by N15.2 billion in a single day.
Northern Nigeria Flourmills (NNFM)
NNFM is a flour milling company founded in October 1971, with key focus on the business of milling wheat, maize, and similar grain. The company printed one of the highest loss on the Exchange on Thursday.
The share price of the flour milling company dropped by 9.97% to close the day lower at N6.32. This move significantly affected the market capitalization of the company, which culminated in a loss of N125 million in value.
Champion Breweries (CHAMPION)
Champion Breweries Plc has been in the news for a while, following the acquisition of 1,903,609,538 ordinary shares of the company by Heineken through its wholly-owned subsidiary, Raysun Nigeria Limited, at a price of N2.6 per share.
This move saw the share price of the brewing company surge from N0.93 on January 8 2021, to N3.76 on the 2nd of February 2021. Since then, the share price of Champion Breweries has continued to suffer significant losses.
At the close of trade on NSE yesterday, Champion Breweries shares suffered a 9.19% decline to close the day lower at N1.68.
This move significantly affected the market capitalization of the brewer, taking its loss on the exchange in a single day to N1.331 billion.
This decline is a potential opportunity for bargain hunters to key in once more, with the expectation to enjoy a gain of about 55%, should Heineken launch a takeover bid of N2.60 per share for the balance of 17.3% or 1,351,954 units of Champion Breweries shares with shareholders.
Honeywell Flour Mill (HONYFLOUR)
The share price of Honeywell Flour Mills Plc has suffered major declines in recent times. The flour milling company, who is also an important part of the Honeywell Group -a foremost indigenous Nigerian conglomerate engaged in select businesses in key sectors of the Nigerian economy- has seen its shares gone from being valued at N1.40 in February to trading at N1.20 towards the end of the same month.
Worthy of note is the fact that the shares of the company during trading activities on NSE yesterday, went as low as N1.13 per share, before buying pressures on the exchange pushed the price back to N1.20 per share.
This move significantly affected the market capitalization of the indigenous flour milling company as it approximately lost N397 billion in a single session.
Dangote Sugar Refinery (DANGSUGAR)
Dangote Sugar has seen its share price decline by more than 8% since declaring a 33% growth in its bottom-line in 2020. The company also proposed a better than the expected dividend of N1.50, 36.36% higher than 2019 dividend (N1.10).
However, despite this impressive performance, Dangote Sugar continues to be punished on the exchange, as wary investors offload the shares of the company, to hunt for yields in the money market.
At the close of trade on NSE yesterday, Dangote Sugar shares suffered a 6.35% decline, to close the day valued at N16.25.
The sell-off in the shares of Dangote’s integrated sugar business on the floor of the Nigerian Stock Exchange yesterday culminated into a loss of N13.4 billion in a single day.