3-Day to Recapitalisation Deadline, Insurance Stocks Lift NGX by N481bn
Investors in the Nigerian stock market gained N481 billion as renewed demand for insurance stocks lifted the market ahead of the July 31 insurance recapitalisation deadline.
The rally, which was also supported by gains in consumer goods and banking stocks, pushed the Nigerian Exchange Ltd. (NGX) market capitalisation up by 0.30 per cent to N159.992 trillion, from N159.511 trillion recorded on Monday.
Similarly, the All-Share Index (ASI) rose by 745.81 points, or 0.30 per cent, to close at 247,984.55, against 247,238.74 in the previous session.
The market’s year-to-date return improved to 59.36 per cent, while market breadth remained positive with 35 gainers against 24 losers.
Insurance stocks dominated the gainers’ chart, accounting for 10 of the 35 advancing equities. Lasaco Assurance led the gainers with a 10 per cent appreciation to close at N2.20 per share.
It was followed by Trans-Nationwide Express and Linkage Assurance, which gained 9.93 per cent each to close at N3.10 and N1.66 respectively.
Also, Sunu Assurance advanced by 9.88 per cent to N3.56, while Critical Minerals Financing Corp. appreciated by 9.86 per cent to N3.79 per share.
On the losers’ chart, Meyer shed 9.97 per cent to close at N16.70, while Mecure Industries declined by 9.94 per cent to N56.20.
ABC Transport lost 9.93 per cent to close at N6.35, C&I Leasing fell by 8.66 per cent to N5.80, while Haldane McCall dropped 8.21 per cent to N3.02 per share.
Trading activity also improved as investors exchanged 676.92 million shares valued at N36.43 billion in 55,412 deals.
Access Holdings Plc led the activity chart by volume with 87.54 million shares, representing 12.93 per cent of the total volume traded.
By value, HBM Nigeria Plc topped the chart with transactions worth N6.83 billion, accounting for 18.74 per cent of the day’s total turnover.
Speaking on the market performance, the Managing Director of Globalview Capital Ltd., Mr Aruna Kebira, attributed the renewed interest in insurance stocks to the approaching recapitalisation deadline, expectations of strong second-quarter earnings and improving prospects for interim dividend payments.
He said investors who had remained on the sidelines were returning to insurance counters in anticipation that many companies had substantially met the new minimum capital requirements, even where formal announcements were yet to be made.
“Some investors were initially on the sidelines, waiting to see what would happen. Whether companies have announced or not, there are indications that some have already secured the required capital, and that is attracting renewed interest in the sector,” he said.
Kebira also said investors were positioning ahead of the release of second-quarter financial results, which he expected to be robust across several listed companies.
He noted that the increasing trend of interim dividend declarations from current earnings, rather than reserves, had further strengthened investor confidence.
“When investors begin to see several companies paying interim dividends from profits, confidence naturally improves. The market is already responding to that trend,” he said.
According to him, investors were also accumulating fundamentally strong but relatively undervalued stocks ahead of broader market rallies, enabling early entrants to benefit as buying momentum spreads across the market.
Kebira expressed optimism that the positive sentiment would be sustained in the coming days, supported by second-quarter earnings releases, interim dividend declarations and the conclusion of the insurance recapitalisation exercise. FirstHoldco Jumps 25% on Post-Earnings Momentum, Firm Cuts TP
