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Japaul Oil & Maritime Services plans to invest in gold mining

The company’s name will be changed from Japaul Oil & Maritime Services to Japaul Gold and Ventures Plc. 

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Japaul Oil & Maritime Services plans to divest into gold mining

Japaul Oil & Maritime Services has announced its plan to change the name of the company to Japaul Gold and Ventures Plc in a bid to delve in mining and technology business activities.

This was disclosed in a notice, which was signed by the Company Secretary, Micheal Edeko, and sent to the Nigerian Stock Exchange (NSE). According to the notice, Japaul intends to seek investors’ consent to raise additional equity capital up to N27 billion whether by way of Right Issue, Public Offer or Private Placement.

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It stated, “We intend to seek the approval of our shareholders to increase the authorised share capital from 6 billion to 60 billion ordinary and/or Preference shares and carry out share reconstruction.

“The Directors be, and are hereby authorised to do all things necessary and incidental to the achievement and fulfilment of the above special resolutions including amending the Memorandum and Articles of Association of the company.”

READ ALSO: How to Profit from Directors’ Share Dealing Notifications

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According to the notice, the company’s 15th AGM would hold at the Japaul Corporate Head office, Ikeja, Lagos on July 29th, 2020. The consolidated statement of financial position of the company, as of December 31, 2019, would be presented to the shareholders at the virtual meeting.

What it means: If Japaul succeeds in increasing its share capital from 6 billion to 60 billion, it means bad and good news for investors.  It could be bad because it represents the issuance of additional shares, which dilute the value of investors’ existing shares.

The good news is that additional share may benefit investors in the form of increased returns on equity, through capital gains, higher dividend payouts.

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READ ALSO: Japaul Oil and Maritime’s share price is gaining momentum

Share reconstruction:  Share Reconstruction otherwise known as a reverse stock split is a process whereby a company reduces the total number of outstanding shares it has by cancelling out shares it does not need.

How it may affect investors: While some argue that share reconstruction does not affect the value of investors’ shares in a company, others insist that the exercise can turn to a nightmare for shareholders. The market may feel the fundamentals of the company is so weak they do not even apply any sentimental value towards the share reconstruction.

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For instance, if Japaul share price changed from 23kobo, as at June 19, 2020, to 46kobo after a scheme of Share Reconstruction, the market may still feel the value the company is worthless and price it less. Therefore the company can drop below 46kobo or lower than the 23kobo it was trading before the reverse split.

READ ALSO: Binance, Bitfinex, Coinbase, Huobi receive about 40% of all BTCs

Meanwhile, the results of the company for the financial year ended in December 2018 showed that revenue fell from N1.9 billion in 2017 to N936 million in 2018. Losses, though lower year on year, remain dire. The firm made a loss after tax of N6.5 billion in 2018, as against a loss after tax of N13.2 billion recorded in 2017.

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The company’s auditors, PKF, have flagged the firm’s growing concern assessment as a key audit matter. The group’s shareholder funds have been eroded to the tune of N34.6 billion, as at 31st December 2018. These have culminated from past operating losses in the last four years. Total indebtedness stood at N58.35 billion as at the 31st of December 2018 with a gearing ratio of 169:1.

The share price of Japaul Oil & Maritime Services closed at N0.23 on Friday, June 19, 2020. While its price earning ratio stands at 0.04, the earning per share and price to book ratio stands at 6.53 and 0.2421 respectively.

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Patricia

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

1 Comment

1 Comment

  1. Anonymous

    June 22, 2020 at 7:38 pm

    I need information how to contact japaul oil and maritime company please.since year 2000 I haven’t been paid my dividends for shares.

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Stock Market

Nigerian bourse gains N37.26 billion, triggered by BUACEMENT, ZENITH

Nigerian bourse finished on a bullish note triggered by AIRTELAFRI, BUACEMENT and ZENITH BANK

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Dangote Cement, Zenith Bank, shares, stocks, ARM's Shares of fortune, Understanding securities lending, nigerian stock exchange, coronavirus, NSE, Bears return ASI down 0.13% as trading volumes plunge, What’s going to happen to Nigeria’s stock market in May?, What’s going to happen to Nigeria’s stock market in May?, Nigerian bourse gains N37. 26 billion, triggered by BUACEMENT, ZENITH

The Nigerian Stock Exchange All Share Index finished today by 0.30% to 24,097.48 points, with market capitalization also adding N37.26 billion to close at N12.57 trillion.

However, trading activity was lower as evidenced by a 18.01% decline in volume of equities traded to 155.52 million units, while the value of trades also fell slightly by 6.60% to N2.60 billion. GUARANTY was the most traded by volume and value at 19.72 million units and N413.8 million.

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Market sentiment, as measured by market breadth, was negative as 18 tickers declined, relative to 17 gainers. REDSTAREX and PZ were the top gainers of the day with 9.76% and 5.00% price appreciation, while OKOMUOIL and UNILEVER topped the losers with 9.95% and 9.78% depreciation in share value.

The sectoral performance was mixed as two of the five indices closed higher, while the other three closed the day in the red. The Banking Index (+0.92%) led the advancers, followed distantly by the industrial Index (+0.09%).

Conversely, the Insurance Index fell by -1.92%, while the Consumer and Oil & Gas Index fell by -0.52% and -0.02% respectively.

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READ MORE: Top banks’ stocks plunge, as bears overwhelms Nigerian tier-2 banks’ rally

FCMB (+4.09%), UBA (+2.48%) and ZENITHBANK (+1.87%) lift the lenders’ Index, while BUACEMENT (+2.51%) raised the industrial Index. MANSARD (-9.66%) and CUSTODIAN (-9.09%) drove the Insurance Index lower, UNILEVER (-9.78%) and GLAXOSMITH (-8.08%) accounted for depreciation in the Consumer Goods Index and MRS (-9.78%) depressed the Energy Index. Similarly, MTNN closed the day lower by -0.86%.

Top gainers 

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REDSTAREX up9.76% to close N3.26,AIRTELAFRI up 3.66% to close at N328.7,BUACEMENT up 2.51% to close at N40.9,ZENITHBANK up 1.87% to close N16.35,PZ up 5.00% to close N4.2

Top losers 

OKOMUOIL down 9.95% to close at N69.7,UNILEVER down 9.78% to close at  N12.45,MRS down 9.78% to close at N12.45,MTNN down 0.86% to close at N115,DANGCEM down 0.79% to close at N126

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Outlook 

Nigerian bourse finished on a bullish note triggered by AIRTELAFRI, BUACEMENT. Nairametrics envisages market volatility will increase in the coming days as earning results are scheduled to come out.

 

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Stock Market

Investors lose N162 billion amidst buying pressure from ZENITH, GTBANK 

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SEPLAT, GUINNESS break Nigerian bourse support levels, investors lose N49 billion  , Nigerian Stock market records sixth consecutive loss, Investors lose N15.55 Billion,Nigerian Stock market records sixth consecutive loss, Investors lose N15.55 Billion

Nigerian bourse continued its bearish trend, taking no rest from previous week losses as the ASI dipped further by 1.27% to 24,026.05 index points on Monday.  

Market capitalization shed N161.59 billion to settle at N12.533 trillion. Accordingly, the Month-to-Date and Year-to-Date losses increased to -1.85% and -10.52%, respectively. 

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Activity levels closed strong, compared to the previous trading session, as total volume and value increased by 31.45% and 83.21% to 189.69million units and N2.78billion respectively. GUARANTY was the most traded by volume and value at 60.46million units and N1.27billion. 

Market sentiment, as measured by market breadth, was negative as 17 tickers declined, relative to 14 gainers. BETAGALSS and JBERGER were the top losers of the day with 9.95% and 9.81% price decline, while NAHCO and ZENITHBANK topped the gainers with 10.00% and 5.25% appreciation in share value. 

Performance across sectors mirrored the broad index as three out of the five major sub-indexes we cover posted losses. Price appreciation in ZENITH and GUARANTY spurred a +1.51% gain in the Banking Index, trailed by the Insurance Index, which appreciated by 1.05%, as CORNERSTONE & AIICO INSURANCE gained.  

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The Consumer goods index led the laggards with (-3.18%), on Nestle -6.51% decline.  The Industrial Index -2.35% followed, due to losses in BUACEMENT (-5.00%), while the Oil and Gas index declined distantly by- 0.04%, impelled by losses in OANDO. 

 READ MORE: Analysis: Seplat’s transfer of OMLs has us wary 

Top gainers 

NAHCO up 10.00% to close at N2.2, ZENITHBANK up 5.25% to close at N16.05, FLOURMILL up 5.11% to close at N18.5, UBN up  1.87% to close at N5.45, GUARANTY up 0.96% to close at N21. 

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Top losers 

BETAGLAS down 9.95% to close at N61.55, JBERGER down 9.81% to close at N16.55 NESTLE down 6.51%  to close at N1175, BUACEMENT down 5.00% to close at N39.9, CILEASING down 8.43% to close at N3.8,  

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Outlook 

Blue-chip heavyweights, BUACEMENT, NESTLE dragged the Nigerian bourse lower on Monday’s trading session, as market liquidity improved slightly. Nairametrics recommends cautious buying as economic uncertainty strengthens amidst Q2 earning result season. 

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Stock Market

Royal Rumble at first trading week of Q3 2020, ASI down 1.99% WoW

Trading in the top three equities accounted for 275.099 million shares worth N2.818 billion in 3,497 deals.

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Nigerian Stock Exchange

The Nigerian stock market ended the week on a bearish note, as the All Share Index (ASI) and Market Capitalization both depreciated by 1.99% to close the week at 24,336.12 and N12.695 trillion respectively.

A total turnover of 961.833 million shares worth N9.181 billion in 20,058 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 739.375 million shares valued at N8.563 billion that exchanged hands last week in 17,248 deals.

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The Financial Services industry (measured by volume) led the activity chart, with 618.714 million shares valued at N4.338 billion traded in 9,669 deals, thus contributing 64.33% and 47.25% to the total equity turnover volume and value respectively.

READ MORE: Nigerian stock market on a flawless bullish run, crude oil boost triggers rally

The Consumer Goods industry followed with 91.119 million shares worth N2.227 billion in 3,703 deals. In the third place was the Conglomerates industry, with a turnover of 60.640 million shares worth N62.779 million in 556 deals.

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Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Bank Plc, and United Bank for Africa Plc (measured by volume) accounted for 275.099 million shares worth N2.818 billion in 3,497 deals, contributing 28.60% and 30.69% to the total equity turnover volume and value respectively.

13 equities appreciated in price during the week, lower than 18 equities in the previous week. 59 equities depreciated in price, higher than 43 equities in the previous week, while 91 equities remained unchanged, lower than 102 equities recorded in the previous week.

READ ALSO: 5 Consumer stocks you should consider for your portfolio 

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Top gainers

OKOMU OIL PALM PLC. up 20.94% to close at N77.40

ROYAL EXCHANGE PLC. up 13.04% to close at N0.26

PRESTIGE ASSURANCE PLC up 10.64% to close at N0.52

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NEIMETH INTERNATIONAL PHARMACEUTICALS PLC up 9.49% to close at N1.50

ACADEMY PRESS PLC. Up 0.30 0.02 to close at 6.67% N0.32

VITAFOAM NIG PLC. up 5.30 0.29 to close at 5.47% N5.59

REGENCY ASSURANCE PLC up 5.00% to close at N0.21

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NESTLE NIGERIA PLC. up 4.73% to close at N1256.80

WAPIC INSURANCE PLC up 3.13% to close at N0.33

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NEM INSURANCE PLC up 2.50% to close at N2.05

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Top Losers

NIGERIAN AVIATION HANDLING COMPANY Plc. down 24.24% to close at N2.00

LEARN AFRICA Plc. down 21.48% to close at 1.06

UNILEVER NIGERIA Plc. down 18.82% to close at N13.80

GLAXO SMITHKLINE CONSUMER NIG. PLC. down to close at N4.95

UNION BANK NIG. Plc. down 15.08% 6.30 -0.95 -to close at N5.35

NASCON ALLIED INDUSTRIES PLC down 13.79% to close at N10.00

AIICO INSURANCE PLC. down 13.13% to close at N0.86

JAPAUL OIL & MARITIME SERVICES PLC down 12.00% to close at N0.22

STERLING BANK PLC. down 10.85% to close at N1.15

ARDOVA PLC down 10.73% to close at N11.65

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