Sovereign Trust Insurance Plc rebounded sharply on the Nigerian Exchange (NGX) on Tuesday, September 22, gaining 9.95 percent to recover from the steep selloff recorded in the previous trading session.
The insurer’s share price rose from N2.01 to N2.21, adding N0.20 per share and emerging as the highest percentage gainer among the equities reported for Tuesday.
The rebound came just one session after Sovereign Trust Insurance declined 8.64 percent, falling from N2.20 to N2.01 on Monday.
Tuesday’s recovery effectively erased Monday’s loss with the stock closing at N2.21, one kobo above its N2.20 closing price at the end of the previous week.
The sharp two-day price swings followed a strong performance in the week ended September 18, when Sovereign Trust Insurance appreciated 30.95 percent, making it one of the leading gainers on the NGX.
The stock had started that earlier weekly advance around N1.68 before closing at N2.20, representing an increase of N0.52 per share.
Monday’s decline initially interrupted that rally, but renewed buying on Tuesday returned the stock above its previous weekly closing level.
Despite the volatility recorded across the two sessions, Sovereign Trust Insurance remained approximately 31.5 percent above the N1.68 level from which its previous weekly rally began, based on Tuesday’s N2.21 closing price.
Other stocks also recorded significant gains during Tuesday’s session.
Critical Minerals Financing Corporation advanced 9.82 percent from N2.24 to N2.46, extending its gain over the first two trading sessions of the week to approximately 20.6 percent.
Neimeth International Pharmaceuticals rose 8.90 percent to N7.95, Cadbury Nigeria gained 8.29 percent to N60.10, while Fortis Global Insurance appreciated 7.73 percent to N1.95.
The broader equities market also closed higher with the NGX All-Share Index advancing 0.18 percent to 250,614.66 points.
Equity market capitalisation increased by approximately N297 billion to N162.68 trillion from N162.39 trillion in the previous session.
Trading activity strengthened as investors exchanged 837.26 million shares worth N48.57 billion in 52,126 deals, compared with 574.19 million shares valued at N38.06 billion on Monday.
Sovereign Trust Insurance’s 9.95 percent rebound therefore restored the stock above its previous weekly close after Monday’s selloff, while leaving the shares substantially above the level recorded before their recent rally.
