Nigerian Exchange Limited (NGX)-listed Transcorp Hotels Plc. has been recording an impressive performance in recent weeks. It continued this week despite the negative performance of the market, recording a 9.30 per cent growth to close at N4.70 per share on Wednesday. The leading hospitality company had started the week on a good note, going up by 9.69 per cent to close at N4.30, per share on Monday.
According to ThisDay, trading at the Nigerian equities market extended last week’s negative performance to the beginning of business for the week on Monday, as investor profit-taking in Lafarge Africa Plc, PZ Cussons Nigeria Plc and, nine others triggered the market’s loss.
In summary, the NGX All-Share Index (ASI) dipped by 48.39 basis points, representing a decline of 0.12 per cent, to close at 39,434.69 basis points from 39,483.08 basis points.
Similarly, the overall market capitalisation value lost N25 billion to close at N20.546 trillion from N20.571 trillion it closed last week.
Save for the Insurance (+0.4 per cent) index that closed in the green, the Industrial Goods (-0.3 per cent), Oil and Gas (-0.1 per cent), Consumer Goods (-0.1 per cent), and Banking (-0.1 per cent) indices recorded declines.
The market negative performance was driven by price depreciation in large and medium capitalised stocks amongst which are; Lafarge Africa, PZ Cussons Nigeria, Union Bank of Nigeria, Guaranty Trust Bank Holding Company (GTCO) and Eterna.
The market breadth closed positively, recording 21 gainers as against 11 losers. FTN Cocoa Processors recorded the highest price gain of 10 per cent to close at 44 kobo, per share. Pharma Deko followed with a gain 9.88 per cent to close at N1.89, while Transcorp Hotels went up by 9.69 per cent to close at N4.30, per share.
The Guardian noted that the NGX reversed previous gains to close on a negative note yesterday, causing the All-Share Index (ASI) to plunge by 0.03 per cent, adding that the bearish performance was buoyed by investors’ profit-taking sentiment across major sectors.
Specifically, the ASI dropped by 10.68 points, representing a decrease of 0.03 per cent, to close at 39,449.82 points. Similarly, the overall market capitalisation lost N6 billion to close at N20.554 trillion.
The market’s negative performance was driven by price depreciation in large and medium capitalised stocks which are: Dangote Sugar Refinery, Guaranty Trust Bank Holding Company (GTCO), Pharma Deko, Zenith Bank and Oando.
Also, investors’ sentiment closed negative, with 19 gainers and 17 losers. Capital Hotels and Eterna Plc recorded the highest price gain of 10 per cent each to close at N3.19 kobo and N6.82 kobo while Morison Industries followed with a gain 9.74 per cent to close at N1.69 kobo.
Transcorp Hotels went up by 9.30 per cent to close at N4.70 kobo while UACN Property Development Company (UPDC) appreciated by 9.22 per cent to close at N1.54 kobo.
Meanwhile, participants at the just-concluded 2021 National workshop of the Chartered Institute of Stockbrokers (CIS), which held at Transcorp Hilton Abuja, have underscored the need to develop and revive the primary market segment to stimulate initial public offering (IPO) and new listings in the capital market.
The stakeholders, who lamented the long wait for IPO resurgence, noted that the segment is key to developing equity capital, which the Nigerian economy direly needs to create wealth and generate jobs for the youths.
The Guardian noted that since the global financial crisis of 2008 till date, no fewer than six companies have approached the market for IPO issuance. However, the listing of Seplat Petroleum Development Company Plc., and Transcorp Hotels Plc., in 2015, ended several years of IPO drought in the capital market.
After four years of zero record from 2015, the hope of a return of the era of IPOs was rekindled with the offer for sale of SAHCO Plc’s 406, 074, 000 ordinary shares of 50 kobo each at N4.65 per share in 2018. Since then, no company has approached the market for a new listing.
