Transcorp Power PLC falls sharply in the stock market as investors turn off the light that has been shining on its shares. After listing, its directors offloaded to provide liquidity, and the share price skyrocketed.
Despite low trading activity and around 8 billion outstanding shares, the market has gradually begun to rectify the company’s very high market value.
The power generation company fell by more than 9.99% in the Nigerian Exchange’s (NGX) equities division at the start of trade this week. Its share price on the Nigerian Exchange declined from N335.2 to N301.7.
What makes the negative price movement significant is that the utilities stock rarely moves, and when it does, it is like an earthquake—left or right. According to trading data, a huge volume of shares of Transcorp Power Plc exchange hands in the market.
More than 1.381 million of Transcorp Power Plc was transacted in the market, and the volume, which was driven by sell side traders, caused the price to dip. The company is trading at about 22% discount to its highest price since it listed.
The NGX now valued Transcorp Power PLC’s 7.5 billion shares outstanding at N2.262 trillion after successive profit taking activities by trading actors.
