Shareholders of Northern Nigerian Flour Mills and Honeywell Flour Mills Plc have received impressive gains of about N2.02 billion as the shares of the flour milling companies surged to incredible heights in four active trading sessions on the NGX.
According to data tracked on the Nigerian stock exchange from the 15th of April 2020 to the close of the market on the 21st of April, the joint market capitalization of the two flour millers –Honeywell and Northern Nigerian Flour Mills – on NGX increased by a total N2.02 billion.
This suggests that in about four trading sessions on the Nigerian Stock exchange, the shares of the two flour millers returned about N2.02 billion market gains to their holders, at the back of sustained buying interest in the shares of these companies.
Bargain hunters who picked up the shares of Honeywell and NNFM at N1.09 per share and N4.90 on the 14th and 15th of April 2021 respectively, were able to maximize their gains to the tune of about 30% and 20% respectively in about 4 to 5 trading sessions on the Nigerian equity market.
The impact on the market capitalization of Honeywell and NNFM
The double-digit gains in the shares of Honeywell Flour Mills saw the market capitalization of the flour milling company surge by about N1.82 billion in total, from N9.44 billion on the 15th of April 2021 to N11.26 billion at the close of trading activities yesterday.
The market capitalization of Northern Nigerian Flour Mills Plc in reaction to the gains in its share price, surged from N873 million on the 15th of April 2021 to N1.07 billion at the close of trade on the NSE yesterday, placing the total gains at N197 million.
The total market value gains of Honeywell Flour Mills Plc and Northern Nigerian Flour Mills Plc in four days are put at about N2.017 billion, despite the lacklustre state of the Nigerian equity space.
What you should know
- At the close of trading activities yesterday, the NGX All-Share Index and market capitalization appreciated by 0.29% to close higher at 39,128.34 index points and N20.477 trillion respectively.
- While the NGX Consumer goods index, an index that tracks the performance of the shares of consumer goods companies like NNFM and Honeywell on the Nigerian Stock Exchange, depreciated by -0.35% to close at 553.26 index points.