Insurance Stocks Defy Bearish Trading at Stock Market


Insurance-Stocks-Defy-Bearish-Trading-at-Stock-Market.jpg

Goddy Egene
Investors in Regency Assurance Plc, Consolidated Hallmark Insurance Plc and Royal Exchange Plc saw their investments grow last week despite the dominance of bear trading in the stock market. Although the Nigerian Exchange Limited (NGX) 's All Share Index (ASI) fell for the second straight week due to declining trading, the three stocks made significant gains for their owners.

For example, Regency Assurance Plc led with 44.1 percent, followed by CHI Plc with 43.1 percent. Royal Exchange Plc also rose by 30.6 percent.
A total of 32 shares rose, while 30 shares depreciated. At the close of trading last week, the NGX ASI fell 0.18 percent to close at 38,256.95 while its market cap ended at N 19.94 trillion.

The volume and value of trades also declined, as investors traded 1.037 billion shares worth N 9.471 billion in 17,577 transactions, compared to N 1.048 billion shares worth N 11.543 billion that exchanged hands in 17,233 transactions the previous week .

The financial services industry, however, remained the most active with 687.623 million shares valued at N5.659 billion trading in 9,506 stores. They thus contribute 66.2 percent and 59.7 percent, respectively, to the total share volume and value.

The conglomerate industry followed with 106.138 million shares valued at N 545.020 million in 1,146 transactions, while third place was occupied by the ICT industry with 84.310 million shares valued at N 350.698 million in 604 transactions.

Trading in the three largest stocks, namely Zenith Bank Plc, Guarantee Trust Bank Plc and Fidelity Bank Plc, accounted for 229.453 million shares worth N 4.281 billion in 3,634 trades.

The market has seen less patronage recently as foreign investors continue to stay away. This development caused the total foreign investor value to hit a four-low last month.

“Please note that the total value of foreign participation in April is the lowest in four years (April 2017: N22.45 billion), which we believe is driven by rising bond yields in the advanced economies due to the persistent foreign exchange illiquidity in the country was caused.

"In the meantime, the weak domestic participation was due to a 66.4 percent month-on-month decline in private investor participation, which masked the 20.3 percent month-on-month increase in institutional participation," said the Cordros Securities analysts.

The analysts said they maintained their expectation of weak domestic and foreign investor participation in the local stock market in the short term due to the sustained surge in bond yields and persistent liquidity squeezes in the foreign exchange (FX) market.

Looking ahead to this week, they said they still anticipate a choppy topic where the bears will dominate the process when there are no positive triggers to instigate a bullish performance.
"Regardless, we advise investors to only take positions in stocks that are legitimate in principle, as the fragility of the macroeconomic environment continues to pose a significant headwind to corporate earnings," they said.

The Monetary Policy Committee of the Central Bank of Nigeria has decided to keep the Monetary Policy Interest Rate (MPR) at 11.5 percent. The MPC also voted to maintain the asymmetrical corridor of + 100 / -700 basis points around the MPR, leaving the cash reserve ratio at 27.5 percent and the liquidity ratio at 30 percent.
The MPR is the rate at which the CBN lends to commercial banks and often determines the cost of borrowing in the economy.

Like this:

To like Loading...

https://thedailytradingnews.com/insurance-stocks-defy-bearish-trading-at-stock-market/

Comments

Post a Comment

Popular posts from this blog

China’s new space station opens for business in an increasingly competitive era of space activity

The International Space Station is no longer the only place where humans can live in orbit. On Nov. 29, 2022, the Shenzhou 15 mission launched from China's Gobi Desert carrying three taikonauts – the Chinese word for astronauts. Six hours later, they reached their destination, China's recently completed space station, called Tiangong, which means "heavenly palace" in Mandarin. The three taikonauts replaced the existing crew that helped wrap up construction. With this successful mission, China has become just the third nation to operate a permanent space station. China's space station is an achievement that solidifies the country's position alongside the US and Russia as one of the world's top three space powers. As scholars of space law and space policy who led the Indiana University Ostrom Workshop's Space Governance Program, we have been following the development of the Chinese space station with interest. Unlike the collaborative, US-led Inte
Read more

North Uist spaceport scheme could 'review' role of Russia-linked firm

Image
Plans to build a rocket-launching spaceport in the Outer Hebrides could be dealt a blow over links to Russia, we can reveal. Western Isles Council has signaled it may need to order a “review” of its partnership with consultancy firm Commercial Space Technologies (CST) Ltd, depending on future government advice. The firm is registered in the UK but has long-standing connections with Russia. Scottish ministers urged businesses on Thursday to cut their ties to Russia amid international outrage at Vladimir Putin's decision to invade Ukraine. CST said it had sought advice from the UK Government's department of international trade. The company is involved in a consortium which is driving the Spaceport 1 project at North Uist. North Uist It is working alongside the local authority, also known as Comhairle nan Eilean Siar, development agency Highlands and Islands Enterprise (HIE), and defense firm QinetiQ. The original plans attracted a flood of objects, but h
Read more

How Iran is accessing the social media accounts of protesters to incriminate them, experts say

Image
CNN — In between being blindfolded, locked in solitary confinement, and interrogated in a wheelchair while she was on a hunger strike following her late September arrest, Negin says she had a realization: Iranian officials were using her private Telegram chats, phone logs and text messages to incriminate her. “They told me 'Do you think you can get out of here alive? We will execute you. Your sentence is death penalty. We have evidence, we are aware of everything,'” said Negin, whose name CNN changed at her request, for her safety. Negin, who says she has been accused by Iranian authorities of running an anti-regime activist group on Telegram (an allegation she denies), said she has “some friends” who were political prisoners. “They put in front of me transcribed printouts of my phone conversations with those friends,” she said, and “questioned me on what my relationship with tho
Read more