Honeywell Flour Extends Two-Week Rally to 65% as Share Price Hits N29.50

Honeywell Flour Mills prolonged its rally final week after pushing its share value to N29.50 and lifting its two-week acquire to almost 65% as shopping for curiosity within the inventory intensified.

The flour milling firm’s shares jumped 30.82% from N22.55 to N29.50 within the week ended November 6, making Honeywell Flour the best-performing inventory on the Nigerian Exchange for the week.

The newest advance adopted a 25.98% acquire within the previous week when the inventory climbed from N17.90 to N22.55.

Across the 2 weeks, Honeywell Flour has subsequently risen by N11.60 from N17.90 to N29.50, representing a cumulative enhance of roughly 64.8%.

The rally has been significantly notable as a result of it continued regardless of a broader reversal within the Nigerian equities market final week.

The NGX All-Share Index declined 2.13% from 254,299.49 to 248,877.22 throughout the week, with 57 equities closing decrease in contrast with solely 29 gainers.

Honeywell Flour moved in the other way.

The inventory had closed at N22.55 on October 30 earlier than extending its advance throughout the brand new buying and selling week. It rose to N24.45 earlier than leaping 9.82% to N26.85 on November 5 and ultimately closed the week at N29.50.

Trading exercise additionally positioned Honeywell Flour among the many most actively traded shares throughout the interval.

The firm joined First HoldCo and Access Holdings because the three largest equities by buying and selling quantity for the week. Together, the three accounted for 992.86 million shares valued at N71.04 billion.

Earlier within the week, Honeywell Flour alone recorded turnover of 74.19 million shares valued at roughly N1.79 billion on November 2, making it probably the most actively traded inventory by quantity throughout that session.

The sustained advance has now reworked what initially seemed to be a robust weekly rally into one of many extra important short-term value actions on the NGX.

An investor who acquired the inventory round N17.90 earlier than the two-week rally would have recorded a paper acquire of roughly N64,800 on each N100,000 invested, excluding transaction prices.

However, the velocity of the appreciation additionally means consideration will more and more flip as to if shopping for momentum may be sustained after an almost 65% enhance inside two weeks.

With the broader market already experiencing elevated profit-taking, Honeywell Flour’s efficiency within the coming classes will present whether or not traders are ready to proceed accumulating the inventory at larger costs or start locking in good points gathered throughout the speedy two-week rally.