NSE insurance index components pride 2% priced over N1.00

…Offers openings for cheap acquisition

The Nigerian insurance sector which opened the 2017 financial year on a depressive note of -11.24 per cent that closed 2016 financial year, has sustained low equity prices as trading enters the last month of the third quarter Wednesday.

The sector which opened last week at 122.61, closed on Friday February 24th at 123.01, resulting to a weekly change of 0.40 per cent and week to date change of 0.33 per cent, however, month to date was -1.51 per cent, while quarter to date and year to date losses stood at -2.60 respectively.

Following the weak performance of the insurance companies which tend to impact negatively on their shares, Daily Times reveals that only two percent of NSE Insurance index components trade above N1.00 per share.

Capital market experts at the just concluded SEC seminar on deployment of 2017 budget to bost capital market, raised the issue of easy acquisition of most companies on the Exchange, especially the Insurance companies, based on their low capitalisation, which could easily be paid for by any local or foreign investor.

According to the NSE INDEX components for the week ended Friday February 24th 2017, the total of 15 companies which made up the NSE Insurance index had a market capitalisation of N88.23 Billion, representing an average of what two companies listed in the same exchange expend for dividend payment to shareholders.

The report showed that only Mansard and Continental Reinsurance trade above N1.00 per share among the 15 companies that constitute the NSE Insurance index. Mansard traded last Friday at N1.57 per share, had 10,500,000,000 shares on issue and a cap factor modified capitalization of N16,485,000,000.00 and a weighted average of 0.186843455.

Out of the 15 companies that make up the NSE Insurance index, ten companies trade at par value of 50 kobo, three companies stocks trade above per value price , but below N1.00 per share, while only two trade at above N1.00 per share.

Continental Reinsurance which stands as one of the highly priced stocks sold last Friday at N1.04 per share, with 10,372,744,312 quantity of shares on issue, had N10, 787,654,084.48 modified capitalisation and a weighted average of 0.122268884 per cent.

AIICO closed the week higher above per value at N0.55, Lawunion also traded above per value at N0.80 per share, while NEM insurance traded at N0.81, above the par value price of N0.50 per share.

Other constituents of the NSE Insurance index which year to date have remained at par value price of N0.50 per share, are Cornerst , Lasaco Mbenefit,Nigerins and Prestige Insurance.

Others Are Sovrenins, Staco, Standard Insurance, Unitykaptal Insurance and Wapic Insurance.