• Business - Market Data
  • Updated: July 20, 2023

Honeywell's Legal Victory Sparks Stock Surge On NGX Trading Day

Honeywell's Legal Victory Sparks Stock Surge On NGX Trading

Investors saw a range of market sentiments during the Wednesday trading session on the Nigerian Exchange Limited (NGX), with the All-Share Index modestly declining to close at 63,757.23 base points from the previous day's 63,766.72 points. 

The market capitalisation also suffered a modest decline, dropping by N5 billion from N34.722 trillion on Tuesday to N34.716 trillion.

The exceptional performance of the stocks of Honeywell Flour Mill and Eterna Oil, which topped the gainers' table, was one of the trading session's major highlights. 

These firms' share prices increased as a result of investors' growing trust in them. The impressive profit for Honeywell Flour Mill follows the firm's big legal success. 

The Federal High Court in Lagos, which presided over the matter involving Honeywell Flour Mills and Ecobank Nigeria, awarded Honeywell Flour Mills N72.2 billion in damages the day before the trading session.

There have been several charges and counterclaims in the continuing legal battle between Honeywell Flour Mills and Ecobank Nigeria. 

The company's financial situation and investor mood are anticipated to be significantly impacted by the court's decision in favour of Honeywell Flour Mills.

Over N10.081 billion worth of shares, or 473,492,114 million, were exchanged in 7,403 trades on the NGX trading floor during the trading session. 

The market had a successful year overall, as seen by the year-to-date returns, which were 24.40%.

The NGX Insurance, NGX Consumer Goods, and NGX Oil/Gas indexes all showed losses in their respective sectors performances of 0.52 percent, 0.48 percent, and 0.62 percent. 

The NGX Banking and NGX Industrial indices, on the other hand, had advances of 2.05 and 0.06 percent, respectively, indicating the varying performances of various industries.

On the NGX, there were both winners and losers during the trading session, with 27 stocks registering losses and 24 stocks posting profits.

Notably, some investors increased the value of their holdings in bellwether shares, which resulted in profit-taking in the following companies: Geregu (-10.00%), Zenith Bank (-1.68%), Wapco (-1.03%), Accesscorp (-0.60%), and FBNH (-0.56%).

In contrast, Honeywell Flour Mill's stock price impressively increased by 10%, demonstrating investors' optimism in the wake of the court decision. NB (+4.47%), Eterna (+9.98%), MTNN (+1.85%), and GTCO (+0.87%) were among the other significant gainers.

PZ (+8.99%), NB (+4.47%), and MTNN (+1.85%) were among the other prominent movers.

The recent NGX trading session served as an example of the market's continued struggle between bulls and bears. While some equities experienced price growth, others were under selling pressure, which added to the erratic market mood.

The most frequently traded stock during the session was JapaulGold, with 77.98 million shares worth N64.59 million transacting hands in 355 trades, as dealers and investors attentively watched the happenings.

The resolution of the legal dispute between Honeywell Flour Mills and Ecobank Nigeria, together with the performance of the market as a whole, will probably continue to have an impact on investment choices and market dynamics in the days to come.

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