Sovereign Trust Insurance Reverses 9% Rally, Falls 9.9% to N2.36

Sovereign Trust Insurance Plc reversed its previous session’s rally on Tuesday as its share price declined 9.92 percent to close at N2.36 on the Nigerian Exchange.

The insurance company’s shares fell by N0.26 from Monday’s closing price of N2.62, wiping out the gain recorded at the start of the week.

On Monday, September 28, Sovereign Trust Insurance had appreciated by 9.17 percent, rising from N2.40 to N2.62 and ranking among the five biggest gainers on the Nigerian Exchange.

The direction changed sharply on Tuesday as selling pressure pushed the stock down to N2.36.

The decline not only erased Monday’s N0.22 per-share gain but also pushed Sovereign Trust Insurance below the N2.40 level at which it entered the week.

Across the two sessions, the stock moved from N2.40 to N2.62 before retreating to N2.36.

This means that despite Monday’s strong rally, Sovereign Trust Insurance ended Tuesday N0.04, or approximately 1.67 percent, below its pre-rally price.

The 9.92 percent decline also placed Sovereign Trust Insurance among the biggest ordinary equity decliners during Tuesday’s trading session.

The reversal occurred as the broader Nigerian equities market came under pressure, with the NGX All-Share Index declining 0.29 percent to 251,913.20 points.

For Sovereign Trust Insurance, however, the key movement was the rapid reversal of Monday’s gain, with the stock moving from a 9.17 percent advance to a 9.92 percent decline in consecutive trading sessions.