Insurance sector emerges most active
February 27th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Clear indications have begun to emerge that will see the insurance sector of the capital market and the Nigerian economy as the new goldmine that would create wealth for investors.
This is hinged on the fact that the sector emerged as the most active for the fist time this year, last week. This is coming just days before the expiration deadline of the ongoing recapitalization exercise, as most investors want to secure a stand on profitability now. Although there was a decline in market activities by 13.2 percent, the insurance sector was very active as the prices of quoted companies were headed northward.
The all share index for the week ended February 23, 2007 dropped by 1.36 percent to close at 40,693.13 basis points as against the previous 41,254.25 basis points. Market capitalization also closed lower at N5.5 trillion compared to N5.6 trillion recorded previously.
A total of 71 stocks appreciated in price during the week, lower than the 84 in the preceding week. Some include Nestle +54.88, NAHCO +6.25, Mobil +5.11, and Okomu Oil 2.18 among others.
On the reverse side, a total of 33 stocks depreciated in price during the week, higher than the 19 in the preceding week. Some of the losers include Chevron -11.60, WAPCO -10.84, Flourmills -8.51, First Bank -3.91 and Conoil -3.53.
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It is a welcome development for the investors.It is another dividend of economic reform which has been witnessed in the banking industry and is making more investors in that industry to be laughing to their banks richer.