The share price of Japaul Oil and Maritime Services Plc on Tuesday suffered the first major decline after a bull run that lasted for days. Japaul had last week appreciated by 53 per cent following renewed demand by investors who were reacting to news that it had entered into a binding commitment with Milost Global Inc., an American private equity firm to inject $350 million into its operations.
Japual had disclosed to market operators, shareholders and other stakeholders that the $350 million capital injection by the United States based firm was in line with the mandate received from the company’s shareholders at the annual general meeting held on Thursday the 30th day of June, 2016.
According to Japual, the facility is in form of $250 million equity injection and $100 million Convertible Notes and it is expected to bail help to bail out the company from the present financial situation.
Based on this information, many investors renewed their demand for the stock, which led to a jump of over 50 per cent to close at 97 kobo per share.
However, profit taking by some investors yesterday reversed the gaining streak and made it to close as the highest price loser. It shed 8.3 per cent to be at 88 kobo per share.
In all, 39 stocks depreciated while 26 others appreciated. FTN Cocoa Processors closed as the second highest price loser with 6.4 per cent. Unity Kapital Insurance Plc shed 6.0 per cent, while Glaxosmithkline Consumer Nigeria Plc and Interlinked Technologies Plc went down 5.0 per cent apiece. Unilever Nigeria Plc, Honeywell Flour Mills Plc and United Capital Plc shed 4.9 per cent, 4.9 per cent and 4.8 per cent in that order among others.
On the positive side, Cutix Plc led with 6.1 per cent, trailed by Double One Plc with 4.9 per cent. Linkage Assurance Plc and NEM Insurance Plc appreciated by 4.8 per cent apiece. Continental Reinsurance Plc and C & I Leasing Plc chalked up 4.6 per cent each among others.
However, the market closed with a marginal growth as the Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.04 per cent to close at 43,073.42.
According to analysts at Meristem Securities, the market mood remained downbeat during given the lower volume of transactions and market turnover.
â€œThe banking and consumer goods sectors recorded losses, sustaining yesterdayâ€™s performance. However, the 1.28 per cent gain on Dangote Cement Plc offset these losses to drive the dayâ€™s performance to a positive close,â€ they said.