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Investors Cautious on Transcorp

News » Business

Investors Cautious on Transcorp

By Goddy  Egene


Shares in Transnational Corporation of Nigeria (Transcorp) Plc fell by about 12 per cent at the stock market last week despite the appointment of Mr. Manz Denga as the acting Chief Executive Officer (CEO)of the company.

The shares fell from N0.95 to N0.84 last week as investors’ demand for the equity fell in spite of the enthusiasm that greeted the appointment of Denga.

A statement from the company had said that the new CEO came in after a successful banking career
spanning over two decades. He was until December 2010, Managing Director of UBA Kenya. Prior to that, he spearheaded the bank's start
up operations in Cameroun, Uganda, Tanzania and Zambia.
Commenting on the appointment of Denga, the Chairman of Transcorp, Dr.(Mrs). Ndi Okereke-Onyiuke said, “Manz Denga’s experience and insight will contribute significantly to the growth of Transcorp and our continuing focus on supporting
Nigeria's economic development.”

Also speaking, Chairman of Heirs Holding Limited, a company that has acquired significant stake in Transcorp, Mr. Tony Elumelu, said: “Denga has worked with me first as Treasurer of Standard Trust Bank and later Group Treasurer of UBA before becoming my chief of staff, a role he played until his appointment to lead UBA's entry into East Africa. I believe he is strongly equipped to create
greater value for all shareholders of Transcorp, especially at this
significant moment in the life of the company.”

However, investors are yet to respond to the coming of the new CEO as market operators said investors might be waiting to see the agenda for the company before reacting appropriately.

“I think it might be too early to conclude but I believe investors are still trending cautiously waiting to see how Denga will consolidate the improving fortunes of Transcorp before they increase their holdings. Even at that, the decline of 12 per cent in the equity price within five days is an opportunity for new investors to come,” a stock dealer said.

In spite of the decline last week, Transcorp remains one of the best performance in terms of capital appreciation so far this year. As at the close of trading last Friday, Transcorp boasted of 68 per cent capital appreciation compared with the Nigerian Stock Exchange (NSE) All-Share Index decline of 8.3 per cent.

Transcorp, a company quoted on the diversified conglomerate with strategic
investments and core interests in the hospitality, agro-business and
upstream petroleum exploration sectors.

 -  Nigerian news, business news, doing business in, naija, Nigeria, West Africa

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Updated 7 Years ago

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