Insurance stocks soar as investors favour cheaper equities

The Nigerian Exchange witnessed a quiet but notable shift in investor activity on Thursday, as insurance stocks outperformed banking equities, reflecting growing interest from retail investors in low-priced securities.

Trading data showed that the banking sector remained subdued, with United Bank for Africa Plc and Zenith Bank Plc losing 0.62 per cent and 0.08 per cent, respectively. UBA traded 5.73 million shares across 693 deals, while Zenith Bank recorded 20.33 million units in 948 trades. Other banks, including Ecobank Transnational Inc. and Fidelity Bank, also declined marginally, while Guaranty Trust Holding Company fell by 0.44 per cent. The banking sector recorded a combined market capitalisation of N1.66 tn, with 55.74 million shares traded.

Meanwhile, the insurance segment quietly attracted attention. NEM Insurance Plc led the sector with a 6.60 per cent gain to close at N26.65 per share, followed by Regency Assurance at 6.12 per cent, Prestige Assurance at 4.29 per cent, Sovereign Trust Insurance at 4.69 per cent, and AIICO Insurance at 2.63 per cent. Total trading volume in the insurance sector stood at 47.07 million shares across 1,236 deals, highlighting strong retail participation. Analysts noted that lower-priced stocks in insurance provide more accessible entry points for investors seeking quick gains compared with the heavily capitalised banks.

Other financial institutions displayed mixed performance. Access Holdings fell 0.49 per cent, and First Holdco lost 1.10 per cent, while United Capital (0.86 per cent) and FCMB (0.45 per cent) recorded marginal declines. The sector traded over 82.4 million shares, indicating robust activity despite price adjustments.

Across other sectors, MTN Nigeria led the telecommunications space with a 4.91 per cent gain to close at N495.70 per share, while Legend Internet rose 8.91 per cent. Consumer goods witnessed notable movements, with Nigerian Breweries gaining 7.57 per cent, PZ Cussons surging 9.36 per cent, and Berger Paints rising 9.88 per cent. Conversely, key stocks such as BUA Foods and Guinness Nigeria remained unchanged. Industrial goods and oil and gas sectors recorded stable trading, with Dangote Cement, Seplat Energy, and Aradel Holdings largely flat.

The All-Share Index closed higher, driven by selective gains across the insurance, telecommunications, and consumer goods sectors, signalling that investors are gradually diversifying away from high-priced banking stocks towards more affordable equities. Analysts suggest this trend could indicate a longer-term preference for value and liquidity over large-cap dominance, particularly among retail investors navigating a volatile market landscape.