Positive sentiment witnessed on the shares of Geregu Power Plc resulted in a 10% or N33.500 billion during yesterday’s trading session, as the Nigerian Exchange bounced back from losses earlier in the week.
Investors have sustained buy pressure on the shares of Geregu Power after the announcement that Afreximbank is set to acquire a minority stake in the company.
The positive sentiment witnessed on the stock was despite the recent hike of the lending rate MPR by 100 basis points to 17.5% by CBN’s Monetary Policy Committee.
The gain: Checks by Nairametrics showed that the company’s stock price rose to N147.40 per share at the close of trading, yesterday, from N134.00 with which it opened the previous trading session, representing a growth of 10% or N33.500 billion.
Further analysis showed that Geregu Power closed the trading day with N368.500 billion in market capitalization as against N335.000 billion on the previous day.
FEDA deal: The Fund for Export Development in Africa (FEDA), the development impact investment platform of African Export-Import Bank (Afreximbank), recently announced that it has received internal approvals to acquire a minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.
FEDA has the obligation of providing capital towards advancing intra-African trade, export development and industrialisation in Africa.
FEDA, in a statement, said it has made a strategic decision to support leading energy platforms across Africa, including the renewables and transition fuels sectors as part of its intervention efforts in Africa’s energy sector.
FEDA noted that it targets to support the business as a minority investor and work with the current owners and management team to drive the expansion of the business over the next years.
In case you missed it: Following the return of the bulls, the benchmark All-Share Index rose by 0.29% to close at 52,752.96 points, the highest level since 14 June 2022.
Geregu power led the gainers with 10% as other market movers such as Zenith Bank gains +0.82%, Stanbic IBTC +1.54% and Access Holdings with +4.44% enhancing the NGX index.
Consequently, the gain puts the index on track for its third consecutive weekly gain since the week ended 13 January.
The year-to-date (YTD) return rose to 2.93%, while the market capitalization gained N83.51 billion to close at N28.73 trillion.
Further analysis of the day’s market activities showed trade turnover finished lower relative to the previous session, with the value of transactions down by 24.84%.
A total of 139.68 million shares valued at N2.02 billion were exchanged in 3,549 deals. GTCO (+0.00%) led the volume and value charts with 17.79 million units traded in deals worth N433.18 million.
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