Bulls maintain dominance in the Nigerian stock market

Shares of Flour Mills Nigeria Plc, one of the biggest brands in the food and agro-allied industry in Africa, surged by 6.9%, lifting the company’s market capitalization by N8.2 billion at the close of the market yesterday (Wednesday).

The impressive N2 per share or 6.9% gain in the shares of Flour Mills yesterday was driven by the buying interest in the shares of the flour miller, as investors anticipate an impressive financial performance ahead of the company’s earnings season.

This bullish move in the shares of Flour Mills pushed the market capitalization of the miller up by more than N8.2 billion on the exchange today, from N118.9 billion at market open to N127.1 billion at the close of the market.

READ: Francis Ngannou’s payout of $580k can buy him 1.06 million units of Dangote Cement shares

Market activity

Flour Mills’ market price cleared yesterday at N31 per share, this is 6.9% higher than Tuesday’s closing figure.

During trading hours on the Exchange yesterday, about 1,350,320 ordinary shares of Flour Mills Nigeria Plc worth about N40.6 million, were exchanged in 125 executed deals.

However, the performance of other flour millers on the exchange was rather bland as Honeywell Flour Mills lost about 3.25% of its value, while shares of Northern Nigerian Flour Mills closed flat at N6.2 per share.

READ: Flour Mills declares N5.65 billion profit in Q3 2020

What you should know

• The Nigerian Stock Exchange All-Share Index and Market Capitalization appreciated by 0.02% to close the day higher at 38,774.03 index points and N20.287 trillion respectively.
• The NSE Consumer Goods Index, an investable benchmark designed to track the performance of consumer goods companies like Flour Mills Nigeria, appreciated by 0.88%.
• The bullish performance of the index can be linked to the increase in the shares of Flour Mills and Nestle Nigeria Plc.
• Nestle’s shares at the close of the market yesterday increased by N45 per share, this gain in the shares of the FMCG giant pushed the market valuation of the company higher, to N1.126 trillion.