NGX lifts suspension on Guinea Insurance Plc, trading resumes amid mixed market performance

The Nigerian Exchange Ltd. (NGX) has lifted the suspension on trading in the shares of Guinea Insurance Plc, effective August 12. The suspension was removed after the company submitted its audited financial statements for the year ending December 31, 2023, according to a statement by the NGX in its weekly report.

The suspension was initially imposed on July 8, as announced in the NGX Market Bulletin, due to the company’s failure to comply with the provisions of Rule 3.1, which requires timely filing of financial accounts.

Under this rule, if an issuer fails to file accounts by the end of the cure period, the exchange is mandated to suspend trading in the issuer’s securities and notify the Securities and Exchange Commission (SEC).

With the submission of the 2023 financial statements, the suspension was lifted in accordance with Rule 3.3 of the Default Filing Rules, which permits the resumption of trading once the relevant accounts are filed and meet the exchange’s standards.

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In broader market activities, the NGX All-Share Index and Market Capitalisation fell by 1.51% over the week, closing at 97,100.31 and N55.132 trillion, respectively, down from 98,592.12 and N55.978 trillion.

This decline resulted in a loss of N846 billion for investors. Despite this, some indices, such as NGX Insurance, NGX Consumer Goods, NGX Oil and Gas, NGX Lotus II, and NGX Growth, showed gains, while others finished lower.

Overall, 39 equities saw price appreciation, down from 46 in the previous week, while 66 equities depreciated, up from 38. Meanwhile, 46 equities remained unchanged.

On the trading floor, Cutix Plc led the list of declining stocks, dropping by N1.05 to close at N4.95 per share, while RT Briscoe topped the gainers with a 33.86% increase to N1.70 per share. The week saw a total of 2.033 billion shares worth N42.155 billion traded in 45,157 deals, a decrease from the previous week’s 2.679 billion shares valued at N49.017 billion.

The Financial Services Industry led the trading activity, contributing 67.73% of the total equity turnover volume, followed by the Oil and Gas and Services industries. The top three equities by volume—Guaranty Trust Holdings Company Plc, Veritas Kapital Assurance Plc, and Japaul Gold & Ventures Plc—accounted for 33.16% of total volume and 38.08% of total value.

Analysts from Cowry Asset Management Ltd. noted that the market remains within a value area, presenting entry opportunities for investors.

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They anticipate a mixed performance in the coming week, influenced by portfolio rebalancing, profit-taking activities, and the forthcoming release of the 2024 second-quarter GDP report and half-year earnings. Investors are advised to focus on fundamentally strong stocks.