By Nkiruka Nnorom
Insurance companies and other equities that have been weighed down by the Nigerian Stock Exchange, NSE, new par value rule policy, which now allows stocks to trade at one kobo, continued their downward movement this week.
At the end of the week, a total of 30 equities recorded price decline led by Consolidated Hallmark Insurance with 22.86 percent decline to close at N0.27 from N0.35.
This was followed by First Aluminium Nigeria, FAN Plc with 19.57 percent decline to close at N0.37 from N0.46. Courteville Business Solution Plc placed third, depreciating by 17.39 percent to close at N0.38 from N0.46. Japaul Oil and Maritime Services Plc traild behind with 14.29 percent decrease to close at N0.36 from N0.42, while Prestige Assurance Plc also went down by 14.29 percent to close at N0.48 from N0.56 per share.
Consequently, activity in the market closed in the negative territory for a second week in a row with investors losing N175 billion.
At the end of the week’s trading, the equities capitalisation dropped to N15.302 trillion from N15.477 trillion, representing 1.13 percent decrease.
Also, the All Share Index, ASI, depreciated by 1.13 percent to 42,638.83 points from 43,127.92 points in the previous week.
Performance across sectors was largely bearish as all sectors declined. The insurance sector depreciated the most, losing 1.7 percent on the back of losses in Consolidated Hallmark Insurance Plc, which went down by 22.9 percent and Prestige Assurance Plc that depreciated by 14.3 percent.
The industrial goods sector, followed closely, falling by 1.1 percent as a result of 9.3 percent losses in Chemical and Allied Products Plc and 2.5 percent decline in Dangote Cement Plc.
The consumer goods sector declined by 0.9 percent on sustained profit taking in Guinness Nigeria Plc and Nigerian Breweries Plc. The banking and oil & gas sectors went down by 0.6 percent and 1.0 percent following price depreciation in Union Bank of Nigeria, Diamond Bank Plc, Forte Oil Plc and Total Nigeria Plc, which fell by 9.1 percent, 5.8 percent, 6.6 percent and 0.4 percent respectively.