In a disclosure statement filed with the Nigerian Stock Exchange, the management of Flour Mills of Nigeria Plc said Paul Miyonmide Gbededo, the Group Managing Director, purchased 1,949,839 shares in the company.
In a statement signed by Umolu Joseph, the Company Secretary and Director, Flour Mills of Nigeria, Gbededo bought the 1,948,839 shares at N28 per unit on November 17, 2020.
The Managing Director invested N54,567,492 in Flour Mills of Nigeria Plc in a move that suggested confidence in the future of the company.
The disclosure is in line with the Nigerian Security and Exchange Commission’s new policy on insider dealings. See the transaction details below.
Nigerian Stock Exchange Sheds N39 Billion on Monday
The Nigerian Stock Exchange opened the week in the red despite strong optimism.
Investors traded 738.525 million shares valued at N4.173 billion in 7,396 deals during the trading hours of Monday.
While market capitalisation of listed equities declined by 0.23 percent or N39 billion from N21.53 trillion recorded on Friday to settle at N21.491 trillion on Monday.
The NSE All-Share Index dipped by 93.76 index points from 41,176.14 it closed on Friday to 41,082.38 index points on Monday.
Japaul Gold led the most traded stocks with 92,361,027 shares worth N145,792,642.99 as investors continued to jump the company ahead of its mine deal with H&H Mines Limited. See the details below.
Top Trades in the Nigerian Stock Exchange
Top Gainers in The Nigerian Stock Exchange
Top Losers in the Nigerian Stock Exchange
Investors Continue to Jump on Japaul Shares Ahead of Gold Mine Deal
Stock investors traded 92,361,027 shares of Japaul Gold and Ventures Plc valued at N145,792,642.99 on Monday as sentiment jumped through the roof following a strong bullish run last week.
Japaul closed with a 56.70 percent gain last week to close at N1.52 per share. The biggest gain for the week.
On Monday, investors continue buying everything Japaul ahead of the H&H Mines deal. However, the company sheds 6.58 percent to close at N1.42 per share.
Read about the deal here Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business
Despite the uncertainty attached to the deal, investors are predicting about N5 for Japaul in 2021 and largely attracted to the stock because of its low price.
Japaul Gold and Ventures Extends Gains by 56.70 Percent Last Week Despite Uncertain Mining Deal
Investors don’t seem to be slowing down on Japaul Gold and Ventures Plc after the company announced it was investing in H&H Mines Limited in November 2020 and even changed its name from Japaul Oil and Maritime Services Plc to Japaul Gold & Ventures Plc.
The price of the company’s share gained 55 kobo or 56.70 percent from 97 kobo in the previous week to N1.52 per share last week. The largest gain per single stock on the Nigerian Stock Exchange last week.
Mutual Benefits Assurance Plc followed with 50 percent gain or 14 kobo from 28 kobo per share to 42 kobo per share.
Japaul Gold and Ventures Plc Uncertainties and Risks
Despite a series of complications highlighted by Japaul Gold and Ventures Plc concerning the deal in November, investors seem to be blinded to the level of uncertainties attached to a deal that depends on the success of proposed fundraising to be closed.
The company had announced that it has gotten approval to invest or acquire shares in H&H Mines Limited after its fundraising exercise. Meaning, a failure or suspension of fundraising due to COVID-19 second phase could derail or delay Japaul’s plans to acquire or invest in the company.
Another shocking statement made by Japaul was that the last lap of exploration works will allow the company to know the degree of minerals reserve contained in the mine, meaning it does not know precisely before seeking approval from H&H Mines Limited.
Also, Japaul is not certain it would be carried along, according to an excerpt from the company’s December statement.
“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.
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