Honeywell Flour Mills extended its rally last week after pushing its share price to N29.50 and lifting its two-week gain to nearly 65% as buying interest in the stock intensified.
The flour milling company’s shares jumped 30.82% from N22.55 to N29.50 in the week ended November 6, making Honeywell Flour the best-performing stock on the Nigerian Exchange for the week.
The latest advance followed a 25.98% gain in the preceding week when the stock climbed from N17.90 to N22.55.
Across the two weeks, Honeywell Flour has therefore risen by N11.60 from N17.90 to N29.50, representing a cumulative increase of approximately 64.8%.
The rally has been particularly notable because it continued despite a broader reversal in the Nigerian equities market last week.
The NGX All-Share Index declined 2.13% from 254,299.49 to 248,877.22 during the week, with 57 equities closing lower compared with only 29 gainers.
Honeywell Flour moved in the opposite direction.
The stock had closed at N22.55 on October 30 before extending its advance during the new trading week. It rose to N24.45 before jumping 9.82% to N26.85 on November 5 and eventually closed the week at N29.50.
Trading activity also placed Honeywell Flour among the most actively traded stocks during the period.
The company joined First HoldCo and Access Holdings as the three largest equities by trading volume for the week. Together, the three accounted for 992.86 million shares valued at N71.04 billion.
Earlier in the week, Honeywell Flour alone recorded turnover of 74.19 million shares valued at approximately N1.79 billion on November 2, making it the most actively traded stock by volume during that session.
The sustained advance has now transformed what initially appeared to be a strong weekly rally into one of the more significant short-term price movements on the NGX.
An investor who acquired the stock around N17.90 before the two-week rally would have recorded a paper gain of approximately N64,800 on every N100,000 invested, excluding transaction costs.
However, the speed of the appreciation also means attention will increasingly turn to whether buying momentum can be sustained after a nearly 65% increase within two weeks.
With the broader market already experiencing increased profit-taking, Honeywell Flour’s performance in the coming sessions will show whether investors are prepared to continue accumulating the stock at higher prices or begin locking in gains accumulated during the rapid two-week rally.
