UBA Chairman, Tony Elumelu Buys Additional 2.199m UBA Shares
Tony O. Elumelu, the Chairman of the United Bank for Africa and Heirs Holding Limited, purchased additional 2,199,373 shares of United Bank for Africa Plc.
In a statement signed by Bili A. Odum, Company Secretary, UBA and released on the Nigerian Stock Exchange, the bank stated that Mr. Tony O. Elumelu bought the shares on Wednesday, July 22, 2020 from the Nigerian Stock Exchange in Lagos at an average price of N6.15 per share.
This was in addition to the 62,643,500 and 6,980,426 shares purchased between 20 and 21, July 2020 in Lagos. Therefore, the Chairman has now purchased a combined 71,823,300 shares in the month of July.
To better throw more light on the activities of UBA executives, Ayoku Liadi, one of the company’s executives, also purchased 3,000,000 shares on July 15, 2020. Bringing the total purchases by UBA executives in July to 74,823,300.
Below are the details of Elumelu’s latest purchase.
Stock Market Gains on Monday Despite Dangote Sugar, UACN, AIICO Closing lower
Stock Market Gains Slightly on Monday
The Nigerian Stock Exchange closed slightly higher on Monday as stocks of Flour Mill, BUA Cement, GTbank and others boosted the Exchange.
The market capitalisation of listed equities expanded to N12.919 trillion while the NSE All-Share Index gained 0.29 percent to 24,766.2 basis points.
Investors traded 186.472 million shares valued at N1.309 billion during the trading hours of Monday.
Top Trades by Volume
Stock Market Closed the Week in Green
Stock Market Gains N139 Billion this Week
The Nigerian Stock Exchange (NSE) closed the week positive despite Guinness, WAPCO and others closing in the red.
The three-day trading week saw market capitalisation of listed equities expanding by N139 billion from N12.743 trillion it closed on Friday to N12.882 trillion on Wednesday when the Exchange closed for the week.
While market capitalisation of listed stocks gained 266 basis points from 24,427.73 bps it closed last week to 24,693.73 basis points on Wednesday.
On Wednesday, Investors traded 101.587 million shares valued at N973.637 million in 3,685 transactions. See the details below.
Why Kodak Stock Gains Over 1500%, Why You Should be Careful
Kodak Stock Jumps Over 1500%, Here is Why You Should be Careful
Shares of Kodak jumped more than 1,500 percent in the last four days following approval of $765 million loan by the US government to the former photography industry leader to start manufacturing pharmaceutical products.
While the move by Donald Trump-led administration was to make U.S self-sufficient in pharmaceutical drugs and reduce U.S. reliance on foreign sources that were almost grounded by COVID-19 pandemic, the relatively affordable value of Kodak stock was what boosted its attractiveness among retail investors that jumped on it through various trading apps like Robinhood.
Kodak opened at $2.15 per share on Monday and quickly rose by over 500 percent on Tuesday after Jim Continenza, the Chief Executive Officer, Kodak, made the loan approval public.
This continues until Thursday morning when the stock hit $41.48. Gaining more than 1,500 percent with market capitalisation hitting as high as $1.75 billion from less than $115 million it opened the week.
Therefore, the stock value rose based on the news and affordability alone without any known product or strong fundamentals in an industry where a failed trial can derail any hype.
This was similar to what happened earlier in the year when the stock of Hertz jumped to unpredictable highs despite the company filing Chapter 11. Retail investors jumped on the stock after report of its bankruptcy plummeted its value, making it affordable to retail investors that kept jumping on it via various trading apps and eventually drove the price of a dying company to a record high.
The stock eventually crashed from $20.29 per share to $1.48 per share as at the time of writing.
At Investors King we believe a similar thing is playing out with Kodak for several reasons, Kodak has no known pharmaceutical product or history with pharmaceutical products rather the struggling photography company is looking to take advantage of unrestrained funds going into the health sector given global pandemic.
While this could eventually work out, Kodak presently lacks the pedigree or necessary tools to compete with top American pharmaceutical companies working hard to address various COVID-19 challenges.
Also, it would take several months or more than a year before Kodak hit the market with any pharmaceutical products. For those Nigerians, using apps to trade American stocks, Egungun be careful o!.
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