Guinea Insurance Plc shares fell sharply on the Nigerian Exchange on Tuesday as investors continued to unwind some of the gains recorded by the insurance stock earlier in the month.
The stock declined 7.78 percent from N0.90 to N0.83, shedding seven kobo during the session and ranking as the second-biggest equity decliner among the stocks reported.
The latest decline contrasts with Guinea Insurance’s strong performance during the week ended October 9, when its share price climbed 29.17 percent from N0.72 to N0.93.
At N0.93, the stock had gained 21 kobo in a single week, placing it among the strongest performers on the Nigerian Exchange during the period.
However, Guinea Insurance has since retreated to N0.83, representing a decline of approximately 10.8 percent from the N0.93 level.
Despite the pullback, the stock remains 15.3 percent above the N0.72 level from which its earlier rally started, meaning a substantial portion of the October advance remains intact.
The price movement also comes after Guinea Insurance significantly expanded its outstanding shares following a private placement.
The company recently listed 6.307 billion additional ordinary shares on the Nigerian Exchange following a private placement at N1.45 per share, increasing its issued shares from approximately 11.15 billion to 17.46 billion.
The additional listing represented an increase of about 56.6 percent in the company’s issued share count, providing an important backdrop to recent trading in the stock.
Guinea Insurance’s decline came despite a broader recovery in Nigerian equities on October 20.
The NGX All-Share Index advanced 0.26 percent to 245,911.13 points, while investors traded 348.75 million shares worth N25.88 billion in 32,639 deals.
Livestock Feeds led the day’s equity decliners with a 9.76 percent drop to N17.10, followed by Guinea Insurance at N0.83.