14 Equities Fall Below 50 Kobo in Five Days

By Dipo Olowookere

A total of 14 stocks dropped below the earlier N0.50k threshold price one week after the Nigerian Stock Exchange (NSE) implemented the price methodology and par value rules.

In the first day the rules took effect, four equities dropped to 48 kobo per share, while three others followed the second day.

The Insurance sector was the worst hit as 10 of its counters slumped below the old price of 50 kobo per share.

However, the sector still closed higher during the week, driven by gains on the heavily weighted stocks in the sector.

The 14 equities, which closed the week below 50 kobo per share last week were ABC Transport (40k), African Alliance Insurance (42k), Cornerstone Insurance (47k), FTN Cocoa Processors (46k), and Consolidated Hallmark Insurance (48k).

Others are Japaul Oil & Maritime Services (48k), LASACO Assurance (36k), MBENEFIT (48k), Multiverse Resources (48k), Prestige Assurance (48k), Royal Exchange (42k), Sovereign Trust Insurance (48k), Unic Insurance (46k) and Unity Kapital Assurance (46k).

As investors prepare for a new trading week from Monday, Business Post expects more stocks, especially in the insurance industry, to be affected by the pricing rule and fall below the 50 kobo per share perch. However, we do not expect this to weigh in on the performance of the sector because of their low impact on the index.