Insurance Index Dips as Investors Sell AXA Mansard, AIICO
Insurance index was down significantly as investors continue to take profit on operators stocks over sustained negative sentiment. Key drivers of sell pressure were AXA Mansard and AIICO Insurance, the top names among listed insurers companies in the local bourse.
The sell pressure plunged market value of the operators lower, and the market anticipates the trend would likely persist in the absence of fresh catalysts to fuel a new rally.
Stockbrokers said the local bourse has reached an overbought level, and the retracement or what some call market correction has been fast and furious. In spite of the sell pressure, Nigerian Exchange year to date return remained healthy, closing at 36% at the close of trading session.
The new insurance Act had triggered a rally in the local bourse, but bargain hunting pull backed amidst uncertainties about readiness of operators to recapitalise within the one year window. Investors are seen showing preference in debt market instruments as rates repricing continues to boost attractiveness of some naira assets – including FGN bonds.
At the close of today’s trading, sectoral performance was largely bearish, driven by largest loss in Insurance index, and consumer goods sector. Stockbrokers reported that the Insurance index (-4.46%) was the worst-performing index today, driven by sell pressures in MANSARD (-9.95%) and AIICO (-7.02%) and Universal Insurance Plc.
Meanwhile, the Consumer Goods (-1.32%), Banking (-0.55%), Oil & Gas (-0.44%), and Commodity (-0.08%) indexes edged lower following profit-taking actions in NB (-5.71%), UBA (-2.03%), OANDO (-3.09%), and ARADEL (-0.45%), respectively. #Insurance Index Dips as Investors Sell AXA Mansard, AIICO Unity Bank, Providus Merger Signals Strategic Rebirth
