The Nigerian stock market opened the week with bearish momentum, as the All-Share Index fell by 0.74 percent to close at 98,708.90 points.
The downturn mirrored a 0.74 percent drop in market capitalization, which settled at ₦59.81 trillion, resulting in investor losses amounting to ₦448.4 billion due to increased sell-offs.
Despite the overall negative sentiment, 18 stocks recorded gains, while 28 declined. Leading the gainers were EUNISELL up by 10.00 percent, LIVESTOCK 9.97 percent, TRANSCORP 9.95 percent, RTBRISCOE 9.84 percent and JAIZBANK 9.28 percent. In contrast, the share price of BUACEMENT declined by 10.00 percent, LASACO 9.79 percent, DAARCOM 9.38 percent, REGALINS 8.93 percent, and JAPAULGOLD 5.86 percent, to top the list of losers.
Sectoral performance was also weak, with declines across major sectors: banking down by 1.47 percent, insurance lost 1.13 percent, consumer goods declined by 0.28 percent oil and gas shrinking by 0.29 percent, and industrial goods shed 3.52 percent.
Trading activity reflected the subdued market, as both volume and value fell by 23.36 percent and 52.22 percent, respectively, although the number of deals rose by 7.35 percent.
Overall, 353.18 million shares were traded across 9,417 deals, amounting to ₦4.55 billion. CHAMS led in trading volume, with 84.6 million units valued at ₦169 million across 72 deals.
Transcorp consolidate shares to strengthen capital structure
Meanwhile, Transnational Corporation has announced the completion of its share reconstruction process.
The share reconstruction resulted in consolidation of the total number of issued shares by the company and listed on the Nigerian Exchange Limited at a ratio of 1 to 4, reducing the total issued and fully paid shares of Transcorp Group from 40.6 billion shares to 10.2 billion shares.
The Company disclosed this in a notice signed by the board secretary Stanley Chikwendu on Monday.
Following the announcement, the entire 40,647,990,293 issued shares of Transcorp were delisted, and replaced with a newly reconstructed issued share capital of 10,161,997,574 ordinary shares at a nominal value of 50 Kobo each, now listed at N44.2 per share on the NGX.
This restructuring follows the approvals granted by Transcorp’s shareholders at the Annual General Meeting held on 27 May 2024, as well as the “no objection” received from the Securities and Exchange Commission.
With the completion of the share reconstruction, the suspension placed on Transcorp’s shares on 10 October 2024 has now been lifted, allowing trading in the newly reconstructed shares to resume.
Announcing the development, Chikwendu said the successful completion of the share reconstruction is a strategic action aimed at maximising long-term shareholders value.
“The share reconstruction involved a consolidation of the total number of issued shares at a ratio of 1 to 4, reducing the total issued and fully paid shares of Transcorp Group from 40.6 billion shares to 10.2 billion shares. Whilst the number of shares reduced pro rata, the total value of shareholders’ investments remains unchanged with no dilutive impact to shareholders.”
Commenting on the share reconstruction, Owen D. Omogiafo, President/CEO of Transcorp Plc said, “This share reconstruction is in line with the Company’s corporate strategy and growth plan and is aimed at maximising shareholders value. The reconstruction will bring the company’s capital structure to a manageable position.
Transcorp Plc remains committed to driving growth and creating value for its shareholders through strategic actions that align with its business objectives.
