Despite the lull in the Nigerian Stock Exchange (NSE), Flour Mills of Nigeria Plc continued its price rally as it led the gainers’ chart on Wednesday.
The flour miller added N1.5 to close at N32.5 per share. It stood at N31 per share on Tuesday.
The stock has been on a bullish trend since October 16, 2009 and Business Hallmark had predicted that the trend would continue this week.
Market watchers attributed the stock’s price rally to the positive corporate news from the Company which revealed that its Management plans to invest N75 billion ($500 million) in a new sugar facility, which it believes would help pull down the price of sugar in the market. It also plans to establish a sugar cane plantation.
Flour Mills has wide chain of business interest. It subsidiaries include Burham Cement, Golden Penny Flour, Bagco, Golden Penny Semovita, Northern Nigeria Flour Mills, Golden Penny Pasta among others.
The group’s audited result for the year ended 31st March 2009 showed turnover of N180.068 billion as against N127.66 billion in 2008.
Its profit after tax and exceptional items however, fell by 63% to N3.892 billion, compared with profit after tax of N6.363 billion in 2008.
The Board of Directors had recommended a dividend of 50 kobo per share with a payment of November 6, 2009.
Flour Mill was closely followed by Nigerian Breweries Plc and UACN Plc on the gainer’s chart as they both added N1.3 and 89 kobo respectively, to close at N55.3 and N41 per share.
On the contrary, African Petroleum Plc led the losers’ chart as it fell by N1.06 to close at N34.93 per share. UAC Property and Eterna Oil Plc fell by N1.05 and 56 kobo to close at N19.95 and N10.64 per share.
In all, a total of 289.778 million shares, valued at N2.417 billion were traded in 6,661 transactions.
First City Monument Bank Plc emerged the most active stock on Wednesday, with a total trade of 25.125 million shares. It was closely followed by Access Bank Plc, Transcorp Plc, Guaranty Trust Bank Plc and Diamond Bank Plc, in that order.
However, the NSE All-Share Index fell marginally by 0.73 points to 22,099.58 points, down from 22,100.31points the previous trading session, just as the market capitalisation retained its N5.214 trillion mark.