Transnational Corporation Plc (Transcorp) has delisted 40,647,990,293 shares from the Nigerian Exchange Limited on Monday and listed a newly reconstructed issued share capital of 10,161,997,574 ordinary shares.

In a statement seen by Investors King, the company said “We refer to our market bulletin with reference number NGXREG/IRD/MB73/24/10/10, dated 10 October 2024, wherein the Market was notified that trading in the shares of Transnational Corporation Plc (Transcorp or the Company) was placed on suspension effective, Thursday, 10 October 2024, in preparation for the share reconstruction of the Company’s Issued shares.

“The Market is hereby notified that the entire 40,647,990,293 issued shares of Transcorp were delisted from the Daily Official List of Nigerian Exchange Limited (NGX) on Monday, 28 October 2024, while the newly reconstructed issued share capital of 10,161,997,574 ordinary shares of 50 Kobo each were also today, listed on the Daily Official List of NGX at N44.2 per share.

“The delisting of 40,647,990,293 ordinary shares and listing of 10,161,997,574 ordinary shares on NGX is pursuant to the approval received from the Company’s shareholders at its Annual General Meeting of 27 May 2024 and the no-objection received from the Securities and Exchange Commission.

“Consequently, following the completion of the share reconstruction, the suspension placed on the securities of the Company has been lifted.”

Stockbrokers and investors have abandoned the equity market due to the Naira volatility, lack of market drive towards the end of the year,  and the high interest rate in Nigeria.

A long-time investor, David Adonri explained that the volume of trade usually drops towards the end of the year but the market normalises in January.

With the persistent drop in the value of the Nigerian Naira against foreign currencies, investors are wary of unfavourable currency conversion.

“The equity market reacts to so many things. The depreciation of the naira, which is around N1,700, of course, would impact the market. The foreign exchange position can make people exit the market and convert to hard currency, which is stronger, possibly to come back to the market when they see an improved currency level. That is what we call carry-over trade,” Adonri said.

“We also have the hike in the interest rate, which also causes financial assets to migrate away from the capital market,” Adonri added.

“Third, we are in the period of the year, where seasonally, the market is a little bit down because there is nothing specific to drive the market like full-year results or half-year dividends and so on. So we slide to a low tempo from September up to November until after Christmas the market starts trending up again,” he further stated.

According to a report by the Nigerian Exchange Group (NGX), equity investment transactions dropped in Q3, 2024 compared to the previous quarter of the year.

In the same vein, the National Bureau of Statistics (NBS) reported that capital importation showed that investors shifted from equity investment to portfolio investment.

The portfolio investment includes equity, bonds, and money market instruments.

With the recent shift, the portfolio investment made a 10.37 percent increase amounting to a $106.85 million gain from the N1.03 billion total capital inflow.

The Nigerian Exchange Limited (NGX) lost 0.25 percent on Wednesday following three consecutive days of gains that saw NGX market capitalization approach N60 trillion.

Activity on the Exchange declined as investors exchanged 257.552 million shares worth N8.993 billion in 7,776 transactions, compared to 286.1 million shares worth N26.8 billion traded in 9,650 deals on Tuesday.

The market capitalization of listed equities decreased by N148 billion from N59.707 trillion in the previous session to N59.559 trillion on Wednesday.

The NGX All-Share Index dropped 0.25 percent, or 249.4 points to close at 98,291.53 index points from 98,540.93 index points on Tuesday.

Deap Capital Management led the gainers with a 10 percent increase while UACN and Dangote Sugar followed with 9.90 percent and 9.69 percent gains, respectively.

On the flip side, Custodian led the losers with an 8.98 percent decline to close at N11.65 per share. Okomu Oil lost N24.90, or 6.86 percent to settle at N338.10 per unit and Consolidated Hallmark Holdings fell 6.62 percent, or 10 kobo to N1.41 per share.

Fidelity Bank was the most traded stock with 38.209 million shares worth N559.084 million exchanged. See other details below.

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