Sustained sell-pressure in insurance stocks drag indices by 0.01%
The Nigerian Exchange Limited (NGX) extended bearish sentiment to two trading sessions yesterday, as sustained sell-pressure in the shares of many insurance companies dragged the All-Share Index (ASI) further by 0.01 per cent.
Specifically, the All-Share Index (ASI) dipped by 5.34 absolute points, representing a marginal decrease of 0.01 per cent to close at 38,858.99 points. Similarly, the overall market capitalisation value lost N3 billion to close at N20.246 trillion.
The market’s negative performance was driven by price depreciation in large and medium capitalised stocks, including, Africa Prudential, AXA Mansard Insurance, Zenith Bank, Access Bank and Cutix.
Analysts at Afrinvest Limited said: “In the next trading session, we expect the bearish performance to persist on the back of weak investor sentiment.”
Vetiva Dealings and Brokerage firm said: “Barring any significant cross trade activity in tomorrow’s (today) session, we expect the market to trade mixed as investors continue to bargain hunt across sectors.”
Furthermore, market breadth closed negative, recording 15 losers and 14 gainers. AXA Mansard Insurance led the losers’ chart by 9.70 per cent to close at N2.70 kobo. Africa Prudential followed with a decline of 8.59 per cent to close at N5.85 kobo.
Regency Alliance Insurance lost 6.82 per cent to close at 41 kobo. Tripple Gee & Company lost 6.25 per cent to close at 90 kobo while Courteville Business Solutions shed 5.71 per cent to close at 33 kobo.
On the other hand, Skyway Aviation Handling Company emerged the day’s highest price gainer with 9.88 per cent to close at N4.45 kobo. Wema Bank followed with a gain of 5.13 per cent to close at 82 kobo.
Flour Mills of Nigeria also appreciated by 1.87 per cent to close at N29.90 kobo. United Capital rose by 1.75 per cent to close at N8.70 kobo. Jaiz Bank gained 1.72 per cent to close at 59 kobo.
However, the total volume of trades rose by 277.4 per cent to 526.301 million units, valued at N3.045 billion, and exchanged in 3,535 deals. Transactions in the shares of Honeywell Flour Mills topped the activity chart with 402.185 million shares valued at N1.528 billion.
United Bank for Africa (UBA) followed with 11.122 million shares worth N82.702 million, while Transnational Corporation of Nigeria traded 9.472 million shares valued at N8.740 million.
Fidelity Bank traded 9.151 million shares valued at N22.398 million, while Wema Bank transacted 8.712 million shares worth N6.759 million.