Shareholders at an event
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Chuks Udo Okonta
The Coordinator Independent Shareholders Association of Nigeria (ISAN) Sir Sunny Nwosu, says reducing the volume of insurance stocks as against the present huge volume in circulation would help push up the prices.
He told Inspen in an interview that inadequate enlightenment is also contributing to the poor pricing of insurance stocks, adding that increased insurance awareness would impact the price of the stocks
“The issue of penny insurance stocks is as a result of enlightenment which is in adequate at the moment. In the past we can understand where they used to have delayed results, but it is not the same presently. If you look at the capital base of insurance companies is as large as the banks, because the quality and pricing of insurance stocks is within the penny rates, and the operators need volume of money to do their businesses, as a result, they put in a large volume of equity to the market, and these equity being in so many hands, affects the demand, hence, forcing the price down.
“When the equity is reduced, through restructuring and it is made slimmer, and a way that people would look for it definitely, the price would go up,” he said.
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