Following Ecobank’s letter addressed to Flour Mills of Nigeria (FMN) Plc’s Managing Director with regards to loans that have not been liquidated by Honeywell Flour Mill with the bank, investors of Honeywell Flour Mills Plc initiated massive sell-offs of the company’s shares reversing yesterday’s gains by 9.78%.
At the end of today’s trading session, Honeywell Flour Mills Plc recorded a loss of 9.78%, which can be attributed to sell-pressures in the shares of the company inducing a loss of N3.17 billion in market capitalization at the close of trading activities on the stock exchange market.
The shares of the FMCG declined from N4.09 per share at the start of the trading day, to N3.69 per share representing a decrease of 9.78% which in monetary terms is N0.40.
The sell-offs witnessed in the shares of Honeywell Flour Mills Plc negatively influenced the company’s market capitalization from N32.43 billion to N29.26 billion at the end of today’s trading activities, taking the depreciation to N3.17 billion.
Share performance history
The shares of Honeywell Plc have gained 207.50% from year-to-date, starting the year at N1.20 and currently trading at N3.69. However, the shares of the company have returned about 251.43% gains for investors who bought them at their 52-week low trading price of N1.05 per share.
During today’s trading hours, 22,855,614 ordinary shares of Honeywell Flour Mills Plc worth about N87.59 million, were exchanged in 262 executed deals.
In comparison, the shares of FMN Plc appreciated by 0.84% to close at N30.00 at the end of today’s trading session, while NNFM Plc remained unchanged to close at N8.00.
What you should know
Earlier this week, both FMN Plc and Honeywell Group Limited announced the signing of an agreement that will allow FMN Plc to acquire a 71.69% stake in Honeywell Flour Mills Nigeria Plc for N80 billion.
However, today, Ecobank Plc came out to advise FMN Plc against the purchase of the stake due to unserviced loans from Honeywell Flour Mills.
At the end of today’s trading activities, the NGX All-Share Index and market capitalization depreciated by 0.02% from the previous trading day, to close at 43,245.02 index points and N22.57 trillion respectively.
However, the NGX Consumer Goods Index appreciated by 0.09% from 560.02 points to 560.53 points at the end of today’s trading session.