Shares of Consolidated Hallmark Insurance Limited have climbed more than 20% week-to-date five days into December, bringing year-to-date performance to 67%.
This increase follows the company’s announcement of successfully completing its re-registration with the Corporate Affairs Commission (CAC) as a limited liability company.
The announcement made public on November 13, 2024, through a press release on the Nigerian Exchange (NGX) disclosure page, revealed that the company would now operate under the name Consolidated Hallmark Insurance Limited.
The news appears to have sparked renewed investor interest, with shares gradually recovering from a low of N1.30 in July and now crossing the N2.30 barrier.
In the early days of December, the stock experienced a nearly 20% increase week-to-date, signaling a shift in sentiment following the company’s restructuring efforts.
Market trend
Consolidated Hallmark Insurance began the year with a share price of N1.47, and a solid market volume of 259 million shares, finishing January in positive territory.
- However, the momentum slowed in February, as price action stagnated, leading to a slight dip in March and April, where the stock closed at N1.44.
- A shift occurred in August, as investor sentiment picked up, driving the stock price to N1.50 by October, with a modest gain recorded.
- November saw a surge in bullish activity, with the stock soaring by 33%, signaling a strong upward trend.
- The positive momentum has continued for five days into December, with shares rising over 20%, supported by a market volume of 9.3 million shares.
Likely drivers of bullish sentiment
One of the likely drivers behind the recent bullish sentiment surrounding Consolidated Hallmark Insurance is the company’s strong financial performance for the period ending September 30, 2024.
- In the first week of November, the company reported a pre-tax profit of N19.5 billion for the 9-month period ending September 30, 2024, a staggering 765% increase year-over-year compared to N2.2 billion for the same period in 2023.
- Additionally, the company’s net interest income surged by 725%, further bolstering investor confidence.
In another significant move, on November 14, Consolidated Hallmark Insurance formally transitioned from a Public Limited Liability Company to a Limited Liability Company, adopting the new name ‘Consolidated Hallmark Insurance Limited’.
This rebranding is part of a broader restructuring strategy aimed at transforming it into a holding company.
According to a press release by Consolidated: ‘’The completion of this transition signifies the finalization of all formalities related to the restructure, positioning the firm to benefit from enhanced operational flexibility and reduced regulatory and compliance burdens.’’