• Monday, April 22, 2024
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Stock market rises by 0.75% on buyers interest in Transcorp Power, MTNN, others

NGX Group, corporates seek Government’s intervention in manufacturing sector

Stock buyers interest in shares of newly listed Transcorp Power Plc continued to push its price higher, driving the market’s rally further by 0.75 percent on Thursday.

The positive close at the Lagos bourse driven majorly by shares of Transcorp Power, MTNN and Dangote Sugar Refinery came despite market watchers expectations of mixed sentiment towards equities investments, with bearish sentiments possibly outweighing positive sentiments as a direct result of the high yields in the fixed income market.

The share price of the newly listed Power company furthered its upward trajectory from preceding day’s low of N319.40 to N351.30, adding N31.90 or 9.99 percent, which is almost the 10 percent maximum daily increase.

Also, MTNN gained after rising from N183 to N201.30, up by N18.30 or 10 percent, while Dangote Sugar Refinery went up from N46 to N50.60, adding N4.60 or 10 percent.

Listing by Introduction – that is listing of the entire issued and fully paid-up ordinary shares of Transcorp Power on the NGX, without issuance of new ordinary shares in the Company or any capital raising.

Lagos-based Vetiva Research analysts who had on Wednesday noted that despite the negative market breadth (0.60x, 18 gainers and 30 losers), market maintains its steady upward trajectory, largely supported by gains in Transcorp entities, said they anticipate similar trading session today (Thursday).

At the close of trading, the Nigerian Exchange Limited (NGX) All-Share Index increased to 100,335.3 points while the value of listed stocks rose to N56.730trillion from preceding day’s 99,591.64 points and N56.310trillion respectively.

The market’s year-to-date (YtD) return stood higher at 34.19 percent after rising week-to-date (WtD) by 1.60 percent.

In 9,708 deals, investors exchanged 554,716,666 shares worth N17.731billion.

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

Transcorp Power listed by introduction at N240 per share, but the company share price has risen to N351.30 per share in early trading on Thursday. The company was listed under the utilities sector (sub-sector: Electric Power Generation).

“We expect increased appetite among investors towards corporates in the financial services sector, as investors look to continue to position themselves in dividend-paying stocks ahead of full-year dividend declarations,” United Capital research analysts said in their recent note to investors.

Transcorp Power Plc undertook the listing by introduction to: provide a platform through which new investors can participate in the Company’s capital and future growth prospects, thereby diversifying existing shareholder base.

It listing also positions the Company for access to an increased variety of capital raising options; as well as further enhance its corporate visibility and awareness. The listing of Transcorp Power also contributes to the growth of the NGX and the Nigerian capital markets.

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.

Post-listing, the company’s shareholding structure will reflect the ongoing trading pattern of its shares between existing shareholders and new investors, as transacted on the NGX.

This listing by introduction does not represent any change in management or strategy and that Transcorp Power remains a full member and subsidiary of Transcorp Group. Transcorp Group shareholders will continue to benefit from the growth prospects of Transcorp Power through their existing participation in Transcorp Group.