Transcorp Power Plc Drops 10% as Investors Offload Shares
Transcorp Power Plc experienced a significant decline in the equities market this week, with its share price plunging by more than 9.99% as investors took profits. The power generating company’s stock fell from N335.2 per share to N301.7 on the Nigerian Exchange (NGX), marking a sharp downturn for a company that has typically seen little price movement.
The drop comes as the market begins to correct Transcorp Power’s market value, which had surged after its initial listing. The company’s directors initially offloaded shares to create liquidity, causing the share price to rise. However, as trading activity remains relatively thin compared to its roughly 8 billion outstanding shares, the stock has now lost some of that momentum.
Notably, more than 1.381 million shares of Transcorp Power Plc changed hands during the latest trading session, with sell-side traders driving the volume. This substantial sell-off resulted in the price dip, leaving the stock trading at about a 22% discount to its highest price since listing.
Despite the recent downturn, Transcorp Power’s market capitalization remains substantial, with the NGX now valuing the company’s 7.5 billion outstanding shares at N2.262 trillion. The stock’s volatile nature, rarely moving but doing so in large swings when it does, underscores the significance of the latest price movement.
With investors continuing to take profits, it remains to be seen whether the stock will regain its upward trajectory or face further correction in the coming weeks.
