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Nigeria’s stock market rout persists

…suspension lifted on trading of AXA Mansard Insurance shares

Though on a slighter note, Nigeria’s stock market tanked further on Tuesday (-0.01percent) as investors continued to ignore visible buy opportunities in many value counters seen trading at new lows amid fear of their investible funds haemorrhaging on Custom Street.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation decreased further at the close of trading from preceding day’s highs of 38,864.33 points and N20.248trillion to 38,858.99 points and N20.245trillion.

AXA Mansard Insurance led the laggards after its share price decreased from N2.99 to N2.70, down by 29kobo or 9.70percent, followed by Africa Prudential Plc which decreased from N6.40 to N5.85, losing 55kobo or 8.59percent of its day-open value.

Read also: Stock market halts bearish run with N11bn gain

AXA Mansard Insurance Plc on Tuesday notified investors that following the communication on September 7 to the Nigerian Exchange Limited (NGX) and its shareholders on the planned suspension of trading on the shares of AXA Mansard Insurance Plc on September 9 in order to effect the share reconstruction/redenomination of AXA Mansard shares, the share reconstruction has now been effected, and the reconstructed shares have been credited to each shareholder’s account. The insurer said in a September 28 notice signed by Omowunmi Mabel Adewusi, its Company Secretary that the earlier suspension of trading on its shares has also been lifted and the shares can now be traded.

This week, the equities market has decreased by 0.27 percent, while month-to-date (MtD) it has depreciated by 0.92percent.

This year’s negative return increased to -3.51percent following record loss of about N3billion. In 3,535 deals, investors exchanged 526,300,850 units valued at N3.044billion. Honeywell Flour Mills Plc, UBA Plc, Transnational Corporation Plc, Fidelity Bank Plc and Wema Bank Plc were actively traded stocks on Tuesday at the Nigerian Exchange Limited.

Meristem research analysts said in their recent note to investors that “the movement in equity prices seems to suggest that investors are not convinced or impressed” despite that indicators suggest improving macroeconomic conditions.

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