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Investors sustain interest in insurance sector
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NSE Trading Floor
Shares in insurance sector boosted trading at the Nigerian Stock Exchange Wednesday as investors exchanged 588.5 million ordinary shares worth N2.8 billion, in 6,675 deals.
Activity in the sub-sector was largely driven by shares traded in Equity Insurance, Crusader and NEM Insurance. Total volume for each stock stood at 190.9 million for Equity; 63.2 million (Crusader) and 58.9 million (NEM) respectively.
Stock brokers predict that demand for the insurance stocks will continue to grow because the prices are considered to be low, an indication that buyers stand to get considerable returns on their investments.
A stockbroker at the NSE actually predicted the performing companies will likely see their shares growing above the N10.00 mark this year.
“Most of the stocks are trading at an average price of N5.00 and with the outcome of consolidation in the industry we have seen improvements in the earnings of some of the companies. The average price could move above N10.00 with the level of demand that we see on a daily basis”
Intercontinental Wapic Insurance plc is currently the highest priced stock in the sub-sector at N10.51 as at Wednesday.
It would be recalled that the insurance sub-sector started the year on a bullish run while experts’ opinion is that investment in the sub-sector would enhance returns more than investment in stocks whose prices have already peaked.
Coming closely behind, the banking sub-sector at the close of trading recorded a total of 319.8 million ordinary shares valued at N7.84 billion done in 8,348 deals.
Investors’ interest in Intercontinental Bank, First Inland Bank and Sterling Bank were the major drivers.
However, market capitalisation dropped N76 billion to close at N10.541 trillion while the all-share index lost 422.1 points to close the day at 57,936.39.
Further review of trading outlook showed that 73 stocks appreciated in price, while 43 others lost weight.
Nestle Nigeria gained N13.30 to lead on the gainers table, closing the day at N279.30. Cappa D’Alberto recorded N3.00 price appreciation to close at N63.00. Oando added N2.36 to close at N129.00. Mobil gained N2.00 to close at N190.00,while Nigerian-German Chemicals went up by N1.35 to close at N28.35.
Conversely, Chevron lost N13.34 closing at N255.00.
ETI dropped N5.00 to close at N210.00 while AP lost N3.80 to close at N265.00. WAPCO dipped N3.23 to close at N67.28 while Conoil dropped N3.00 to close at N83.00.
Stock brokers predict that demand for the insurance stocks will continue to grow because the prices are considered to be low, an indication that buyers stand to get considerable returns on their investments.
A stockbroker at the NSE actually predicted the performing companies will likely see their shares growing above the N10.00 mark this year.
“Most of the stocks are trading at an average price of N5.00 and with the outcome of consolidation in the industry we have seen improvements in the earnings of some of the companies. The average price could move above N10.00 with the level of demand that we see on a daily basis”
Intercontinental Wapic Insurance plc is currently the highest priced stock in the sub-sector at N10.51 as at Wednesday.
It would be recalled that the insurance sub-sector started the year on a bullish run while experts’ opinion is that investment in the sub-sector would enhance returns more than investment in stocks whose prices have already peaked.
Coming closely behind, the banking sub-sector at the close of trading recorded a total of 319.8 million ordinary shares valued at N7.84 billion done in 8,348 deals.
Investors’ interest in Intercontinental Bank, First Inland Bank and Sterling Bank were the major drivers.
However, market capitalisation dropped N76 billion to close at N10.541 trillion while the all-share index lost 422.1 points to close the day at 57,936.39.
Further review of trading outlook showed that 73 stocks appreciated in price, while 43 others lost weight.
Nestle Nigeria gained N13.30 to lead on the gainers table, closing the day at N279.30. Cappa D’Alberto recorded N3.00 price appreciation to close at N63.00. Oando added N2.36 to close at N129.00. Mobil gained N2.00 to close at N190.00,while Nigerian-German Chemicals went up by N1.35 to close at N28.35.
Conversely, Chevron lost N13.34 closing at N255.00.
ETI dropped N5.00 to close at N210.00 while AP lost N3.80 to close at N265.00. WAPCO dipped N3.23 to close at N67.28 while Conoil dropped N3.00 to close at N83.00.
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