Geregu, Transcorp halt stock market’s seven-day winning streak

The Nigerian stock market closed in the red on Tuesday after seven consecutive days of gains as Geregu Power Plc and Transnational Corporation Plc led the losers at the end of trading.

The All Share Index of the Nigerian Exchange Limited fell by 0.2 percent to 52,296.48 basis points while the market capitalisation dropped to N28.48 trillion.

Markets Reporters had reported on Saturday that Nigerian stocks pared their recent losses last week, as the market posted a gain for the first time since the week ended March 10.

The main index and market capitalisation rose by 2.04 percent to close at 52,403.51 and N28.534 trillion respectively on Friday, with Transcorp emerging as the most traded stocks last week. The market was propped up by the trading of the company’s shares by two tycoons: Tony Elumelu, its chairman, and Femi Otedola, who chairs Geregu Power. Otedola had bought Transcorp shares to become a major shareholder, and then Elumelu raised its stake in the company to over 25 percent but Otedola reportedly later sold his shares. 

Geregu Power saw its share price plunge by 10 percent on Tuesday to N290.70 while Transcorp tumbled by 9.96 percent to N2.53.