The stock exchange was a beehive of activities yesterday , especially in the insurance sub- sector of the floor. This is coming as no surprise, especially after the release of the names of 49 insurance firms that have been licensed by the federal government to carry out the risk underwriting business.

It would be recalled that there has been a lingering battle between National Insurance Commission (NAICOM) and some insurance companies as to the validity of the just concluded recapitalisation exercise in the sector. This lingering battle kept the prices of insurance companies in the red for a long while, possibly causing losses for investors as there was an air of uncertainty concerning the outcome of events then.

The case was the exact opposite once the final names were released, as all companies in the insurance sector closed on maximum bid, thereby gaining maximum 5 percent increase at the end of trading. It is expected that this new rally would continue in the weeks ahead as investors are all scrambling for a stake in insurance companies.

A similar trend happened earlier in the year when the recapitalisation was concluded an a list was released. Companies in the sector in the first half of the year made a high as about 300-500 percent capital appreciation. Can this repeat itself again? Only time will tell.