Transcorp falls 38% after boost from Otedola, Elumelu’s stock-buying spree
Transnational Corporation Plc has seen its share price decline by almost 38 percent from a peak of N3.12 last week.
The company, which is the parent of Transcorp Hotels, lost the most (9.77 percent) on Friday to close at N1.94 per share.
On April 12, when the news broke that Femi Otedola, chairman of Geregu Power Plc, had bought a majority stake in Transcorp, the company’s share price was N1.40. Tony Elumelu, who chairs Transcorp, raised its stake in the company to over 25 percent, with Otedola reportedly later selling his shares to him. The company’s share price surged to N3.12 on April 27.
The All-Share Index of the Nigerian Exchange Limited and market capitalisation appreciated by 0.12 percent to close the week
at 52,465.31 and N28.568 trillion respectively.
All other indices finished higher with the exception of NGX Main Board, NGX 30, MERI Growth, and NGX Growth which depreciated by 0.61 percent, 0.32 percent, 0.62 percent, and 8.96 percent respectively while the NGX ASeM and NGX Sovereign Bond indices closed flat.
A total turnover of 2.973 billion shares worth N22.828 billion in 23,765 deals was traded this week by investors on the floor of the Exchange, in contrast to 14.029 billion shares valued at N59.007 billion that exchanged hands last week in 24,048 deals.
The financial services industry led the activity chart with 1.458 billion shares valued at N14.082 billion traded in 13,115 deals, thus contributing 49.04 percent and 61.69 percent to the total equity turnover volume and value respectively.
The conglomerates industry followed with 1.254 billion shares worth N3.123 billion in 1,662 deals, while the third place was the consumer goods industry, with a turnover of 71.425 million shares worth N1.468 billion in 3,177 deals.
Trading in the top three equities, namely Transcorp, Access Holdings Plc and Fidelity Bank Plc accounted for 2.074 billion shares worth
N11.297 billion in 5,966 deals, contributing 69.76 percent and 49.49 percent to the total equity turnover volume and value respectively.
