Trading activities on the Nigerian Exchange Limited (NGX) showed a shift in momentum for the insurance sector this week compared to last weekend’s performance. The latest market data reveal a noticeable slowdown in both volume and value traded across major insurance equities, signaling cautious investor sentiment after a previous week of heightened activity.
From June 30 to July 4, 2025, the Insurance Carriers, Brokers, and Services sub-sector recorded a total of 701.2 million shares traded across 8,184 deals, valued at ₦1.11 billion. This reflects a marginal dip when compared to the upbeat figures posted the weekend before, where total market turnover crossed ₦1.3 billion with higher share volumes traded across a broader spread of companies.
Key Performance Comparisons:
- Consolidated Hallmark Holdings Plc (CONHALLPLC) led this week’s chart with 65.38 million shares traded for ₦190.22 million, closing at ₦3.00. However, this was slightly lower than its previous week’s figure of 72 million shares, suggesting a cooling off of interest.
- AIICO Insurance Plc. posted 54.22 million shares valued at ₦86.97 million, down from over 60 million shares the weekend before.
- Universal Insurance Plc (UNIVINSURE), last weekend’s volume leader, traded 154.1 million shares worth ₦93.67 million this week. Though still robust, this marks a slight retreat from the over 165 million shares it moved last weekend.
Meanwhile, Coronation Insurance Plc (WAPIC) recorded 67.51 million shares traded for ₦145.53 million, down from the prior weekend’s more bullish 70 million shares at the same ₦2.50 price level.
Some Gainers Hold Steady Amid Overall Caution
Despite the slowdown, a few insurers maintained steady interest:
- Sunu Assurances Nigeria Plc continued to trade positively, closing this week at ₦5.00 with a turnover of ₦38.31 million, roughly consistent with last weekend.
- NEM Insurance Plc, trading at ₦18.00, saw a marginal increase in value, closing with ₦51.12 million this week compared to ₦49 million last weekend.
Market Reflection: Why the Slowdown?
Market analysts attribute the slight decline in this weekend’s performance to profit-taking activities by short-term investors who took advantage of last weekend’s surge. The broader equities market sentiment also turned cautious following macroeconomic signals during the week, leading to selective participation in insurance stocks.
Reflecting on last weekend, the insurance sector witnessed one of its most active trading periods in recent times, driven by bargain hunters and optimistic projections on insurance penetration and financial inclusion. That momentum, however, appears to have softened this week, with traders pausing to reassess valuation levels and sector fundamentals.
Analysts’ Outlook: Sector Fundamentals Remain Positive
Despite the week-on-week moderation, the insurance sector is still on a recovery path. Analysts say the sector’s fundamentals remain positive in the medium term, backed by regulatory reforms from the National Insurance Commission (NAICOM), rising retail participation, and gradual improvement in sector profitability.
“This week’s dip is part of normal market cycles. We expect renewed interest as earnings season approaches and companies release half-year results,” said a market analyst at Afrinvest Securities.
Last Weekend’s Rally Outshines This Week’s Calm
In summary, last weekend’s market rally remains the stronger performance, with higher volumes and market excitement compared to this weekend’s more cautious trades. Yet, the sustained interest across key insurance tickers indicates that investors are still positioning for longer-term sector growth, even as some take profits along the way.
The big test for insurance equities will be maintaining this interest as macroeconomic challenges persist and sector players work to translate market activity into real business growth.
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