Transcorp Power PLC saw a sharp decline in its share price, falling by 9.99% on the Nigerian Exchange (NGX) as investors engaged in significant sell-offs.
The company's stock price dropped from N335.2 to N301.7 per share at the start of this week’s trading session, marking a notable shift for a utility stock that rarely experiences such volatility.
Initially, the company's directors offloaded shares to create market liquidity, boosting its share value. However, with around 8 billion shares outstanding, the market has begun correcting what was seen as an inflated valuation relative to the company's thin trading activity.
More than 1.38 million shares of Transcorp Power were traded, predominantly driven by sell-side pressure, causing the steep price dip. As a result, the company’s stock is now trading at a 22% discount from its peak since listing, with its market capitalization falling to N2.262 trillion following ongoing profit-taking by investors.
No comments:
Post a Comment