Transcorp Power Falls by 10% as Investors ‘Unplugged’
Transcorp Power PLC declines strongly in the equities market as investors off the light that has been shining on the company shares. After listing, its directors were offloading to create liquidity, and the share value surged.
Gradually, the market has started correcting the company’s relatively huge market value in spite of thin trading activities when compared with about 8 billion outstanding shares.
The power generating company plunged by more than 9.99% in the equities segment of the Nigerian Exchange (NGX) at the very beginning of trading session this week. Its price fell from N335.2 per share on the Nigerian Exchange to N301.7.
What makes the negative price movement significant is that the utilities stock rarely moves, and when it does, it is like an earthquake—left or right. According to trading data, a huge volume of shares of Transcorp Power Plc exchange hands in the market.
More than 1.381 million of Transcorp Power Plc was transacted in the market, and the volume, which was driven by sell side traders, caused the price to dip. The company is trading at about 22% discount to its highest price since it listed.
The NGX now valued Transcorp Power PLC’s 7.5 billion shares outstanding at N2.262 trillion after successive profit taking activities by trading actors. #Transcorp Power Falls by 10% as Investors ‘Unplugged’ FBN Holdings Divests Interest in Merchant Business to ‘Consortium’
