Insurance sub-sector remains on the upbeat

Experts had predicted that there would be replay of what happened in banking sub-sector in the sector at the end of the recapitalization exercise, which ended on February 28th, 2007.

Some of the companies are already enjoying a lot of patronage from anxious investors who are eager to buy into the sector.

Indeed, companies like Intercontinental WAPIC Insurance and Prestige Assurance have since crossed the two-digit mark, closing at N11.00 and N10.05 at the end of transactions last week.

The sub-sector also dominated the other sectors at the end of trading last week, with turnover value in a single week hitting an all-time high.

Specifically, a turnover of 2.26 billion shares valued at N10.42 billion exchanged hands in 19,337 deals, representing 49.9 per cent of the market turnover for the week.

Trading was driven by interests in the shares of Lasaco Assurance Plc, Equity Assurance Plc, and NEM Insurance. Trading in the shares of these companies accounted for 49.57 per cent of the sub-sector’s turnover.

Lasaco Assurance emerged the most active in the sector with a turnover of 535.67 million shares valued at N2.17billion in 3,345 deals. Equity Assurance Plc followed with 344.01 million shares valued at N1.12 billion in 2,918 deals, just as NEM Insurance Plc recorded 239.59 million shares valued at N936.18 million in 2,823 deals.

The Banking sub-sector followed on the sectorial analysis with a turnover of 1.53 billion shares valued at N37.11 billion in 35,990 deals. Fidelity Bank Plc recorded the highest transaction in the sub-sector, trading 289.36 million shares valued at N3.48 billion in 3,443 deals. Oceanic Bank International followed with exchange of 181.86 million shares valued at N5.16 billion in 2,954 deals.

Intercontinental Bank plc recorded 172.74 million shares valued at N6.99 billion in 3,066 deals.

The all-share index and market capitalisation appreciated in the week under review by 0.14 per cent.

Specifically, the index, which opened the week at 58,406.36 points closed at 58,211.69 points while the capitalisation closed at N10.59 trillion from N10.58 trillion.

Chevron Oil Nigeria Plc recorded the highest share price gain, rising by N52.67 per share to close at N243.40 per share, Julius Berger Nigeria Plc followed with a gain of N9.42 to close at N94.45 per share and Beta Glass Company Plc garnered N4.59 to close at N24.15 per share.Platinum Habib Bank gained N4.00, while Guinness Nigeria Plc added N3.00.

On the contrary, African Petroleum Plc recorded the highest share price loss, dropping by N10.11 to close at N260.00 per share. Mobil Oil followed with a loss of N9.44 to close at 180.00 per share while Ashaka Cement Plc dipped N8.38 to close at N46.57 per share. Nestle Nigeria lost N8.10 while Oando, which closed the list of top five losers declined by N5.67.