NGX Equities Market Opens Positively With Transcorp Power Listing

Stock Exchange Closes Trading Week With N30bn Gain

The Nigerian Exchange’s (NGX) stock market began the week with a gain following a run of losses that erased N4 trillion from the local exchange in only two weeks. According to a stockbrokers report, the all-share index (ASI) increased by 0.10% on Monday, mostly due to high investor interest in BUACEMENT (+4.44%) and the recently listed TRANSPOWER (+0.00%).

Gains from the Transcorp Group, Geregu Power Plc, and PZ are a few other noteworthy contributors. In particular, at the start of the week, TRANSCORP saw a gain in the market of +9.94%, GEREGU saw a gain of +2.35%, and PZ saw a gain of +9.93%.

Transcorp (+9.94%) was the best-performing stock on the exchange according to the trade record, while DANGSUGAR (-10.00%) was the worst-performing business.

Trade metrics moved in tandem, with the total volumes advancing by 16.87% to 429.64 million units, while the value traded advanced by 193.76% to N19.92 billion.

TRANSCORP led the volume chart with 203.43 million units traded, accounting for 40.35% of the total volume, while TRANSPOWER led the value chart with deals worth N10.56 billion, accounting for 102.50% of the total turnover. However, the market breadth closed negative at 0.96x (24 gainers and 25 losers).

Sectoral performance was mixed, with industrial goods (+1.58%) due to interests in building (+4.44%). Also, the Oil and Gas (+0.04%) index closed higher. On the flipside, the Consumer Goods (-1.20%), Banking (-0.46%), and Insurance (-0.19%) indices contracted following selloffs in DANGSUGAR (-10.00%), UBA (-3.04%), and MANSARD (-2.88%), respectively.

Dangote Sugar Refinery Plc reported a N73.8 billion loss that was primarily driven by foreign exchange losses incurred during the period. Specifically, the company recorded material increases in net exchange losses on its business operations and letters of credit.

In addition to the impact of FX movements, the new intercompany loan of N117.5 billion added further pressures to finance costs and bottom lines. Transcorp Power Plc, a subsidiary of Transnational Corporation Plc, was listed by introduction on the main board of the NGX at N240, with a market cap of N1.8 billion.

The stock gained 10.00% to close at N264 after 40 million units changed hands at a total value of N10.56 billion.