Axa Mansard, Learn Africa, Legend, others cause market’s new dip

… Sovereign Trust Insurance eyes N20bn capital raise

Stocks like Axa Mansard Insurance, Learn Africa, Legend Internet, and other market decliners on Wednesday led to the stock market’s record dip by 0.45 percent.

The market’s third day of negative close came after Axa Mansard Insurance, one of the major laggards dropped by 9.95 percent, from N15.98 to N14.39, losing N1.59.

It was followed by Learn Africa which was down by 10 percent, from N7.80 to N7.02, losing 78kobo; and Legend Internet which was down from N5.30 to N4.77, after losing 53kobo or 10percent. The share price of Universal Insurance, another major decliner dropped from N1.25 to N1.13, losing 12kobo or 9.60 percent.

Access Holdings, Fidelity Bank, GTCO, UBA, and AIICO were most traded stocks as securities traders in 28,193 deals exchanged 482,760,713 shares valued at N19.672billion. The volume traded represents 18.45 percent increase compared to the preceding day’s level.

At the close of trading on Wednesday, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and equities market capitalisation decreased further from preceding trading day’s highs of 138,780.55 points and N87.810 trillion respectively to 138,157.16 points and N87.416 trillion. The market’s return year-to-date (YtD) has decreased to 34.23 percent.

In a related market development, Sovereign Trust Insurance Plc will at its 30th Annual General Meeting (AGM) in Lagos on Thursday, September 25 seek shareholders approval to among other undertake a capital raise of up to N20billion.

“The capital raise transaction shall be implemented by one or more transactions, through the issuance of shares, by way of a public offering, private placement, rights issue in the Nigerian or international capital markets, at price(s) to be determined by way of a book building process or any other valuation,” the company said in its recent AGM notice.

The board of directors of Sovereign Trust Insurance Plc has recommended a dividend of 5kobo per ordinary share, which is payable less withholding tax. If the recommendation is approved at the company’s forthcoming 30th Annual General Meeting, the shareholders whose names appear in the register of members as at the close of business on September 5 will have their accounts credited immediately after the Annual General Meeting on September 25.