Bloomberg News

Honeywell Flour of Nigeria Gains for Longest Streak in 4 Weeks

November 08, 2012

Honeywell Flour Mills Plc (HONYFLOU) gained a fourth day as investors speculated the Nigerian wheat processor will repeat its first-quarter performance in the second, Lambeth Trust and Investment Co. said.

The stock climbed 4.5 percent to 2.31 naira by the close in Lagos, Nigeria’s commercial capital, its longest rising streak since Oct. 12. More than 1 million shares, or 56 percent of the three-month daily average, traded, according to data compiled by Bloomberg.

First-quarter profit through June jumped 10-fold to 475 million naira ($3 million) from 46 million naira a year earlier, the company said on Sept. 20. Revenue rose to 10.7 billion naira from 9.3 billion naira.

“The result was very impressive and that’s why investors are taking positions on the stock now before the release of its second-quarter results,” David Adonri, chief executive officer of Lambeth, said by phone from Lagos today.

When Bloomberg called Honeywell’s Lagos office, a receptionist said the company’s spokesperson was unavailable.

Honeywell traded at 2.68 naira on Oct. 12, according to Bloomberg data, and some investors are buying now to sell it when it reaches that level again, Raheem Mohammed, chief operating officer of Kundila Finance Ltd., said.

“The possibility of the price rising to that level before the end of the year is still there, and if you make 30 kobo per share on 1 million shares, you would have made a lot of money,” he said by phone from Lagos today.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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