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Stock market in early rally on Tuesday as investors buy Transcorp Power

Stock market moves further south by 0.43%

In early trading on Tuesday, March 5, Nigeria’s stock market rose by 0.23percent following increased buy-interest in shares of newly listed Transcorp Power Plc.

As at 12.05 pm on Tuesday March 5, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) increased from preceding trading day’s low of 98,847.89 points to 99,073.38 points.

Transcorp Power Plc listed by introduction at N240 per share, but the company share price rose to N264 at the close of trading on Monday.

In early trading on Tuesday, the stock rose to N290.40, up by N26.40, representing maximum daily rise of 10percent. The company was listed under the utilities sector (sub-sector: Electric Power Generation).

Also, its parent company share price rose from N15.70 to N17.27, up by N1.57 or 10eprcent.

In their response on what shapes the market on Tuesday, Vetiva research analysts said after the listing of 7.5 billion ordinary shares of Transcorp Power by way of introduction they expect to see continued demand for the stock amid elevated buy-interest in the shares as well, while market anticipates more earnings reports.

Transcorp Power Plc (TPP), a subsidiary of Transnational Corporation Plc (Transcorp) listed its 7.5 billion ordinary shares of 50 kobo on the Main Board of the Nigerian Exchange Limited (NGX).

Before the listing, the company’s shareholding structure was as follows: Transcorp Plc (51.6percent), Rich Point Limited (33.3percent), Woodrock Energy Resources Limited (7.4percent), and Others (7.7percent).

The listing by introduction implies that existing shareholders in the Company are offering a portion of their ordinary shares in order to create liquidity in the market and enable institutional investors and members of the investing public to acquire shares in the Company.