Stock market rallies by 0.35% as investors buy Transcorp Power, others

Nigeria’s stock market rallied further on Tuesday by 0.35percent or N194billion following investors increased buy-interest in shares of newly listed Transcorp Power Plc and other value counters. The market has risen this year by 32.66percent.

Transcorp Power Plc which listed by introduction its 7.5 billion ordinary shares at N240 per share saw the price rise to N290.40 on Tuesday, from debut trading day’s close of N264, representing an increase by N26.40 or maximum daily rise of 10percent.

The company was listed under the utilities sector (sub-sector: Electric Power Generation). Also, the share price of its parent company – Transnational Corporation (Transcorp) Plc rose from N15.70 to N17.27, up by N1.57 or 10percent.

The shares of Transcorp Power and its parent company – Transnational Corporation as well as that of UBA, Access Corporation and FBN Holdings were actively traded on the Nigerian Exchange Limited.

FBN Holdings shares were also on demand as the price rose from N28.35 to N31.15, up by N2.80 or 9.88percent. NASCON led the decliners league after its share price dropped from N53.50 to N48.15, down by N5.35 or 10percent.

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.

Ahead of Tuesday’s trading, Vetiva research analysts said after the listing of 7.5 billion ordinary shares of Transcorp Power by way of introduction that they expect to see continued demand for the stock amid elevated buy-interest in the shares as well, while market anticipates more earnings reports.

The market rallied despite that the Central Bank of Nigeria (CBN) will on Tuesday March 6, 2024 hold a Treasury Bills (T-Bills) Primary Market Auction (PMA). At the PMA, existing T-Bills totalling N337.89billion (N14.42billion, N10.55billion and N312.92billion across the 91-day, 182-day, and 364-day instruments, respectively) will mature and be rolled over.

At the close of trading session on Tuesday March 5, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market capitalisation increased from preceding trading day’s lows 98,847.89 points and N55.889trillion to 99,192.82 points and N56.083 trillion. In 10,976 deals, investors exchanged 398,134,011 shares worth N31.788billion.