Shares of Gulf Navigation Holding fell to 2.18 AED after experiencing a 10% decline during Tuesday’s trading session, continuing a trend of thirteen consecutive sessions of maximum limit drops, leading to a total loss exceeding 74%.
On Tuesday, the stock witnessed a transaction valued at 24.2 million AED involving 10 million shares, priced at 2.42 AED each.
The stock had shown an upward trend since the beginning of the year, reaching a peak of approximately 80% growth until October 17.
Ali Aboud, the Chief Financial Officer at Gulf Navigation Holding, stated that the recent movements are largely driven by market dynamics, following the issuance of mandatory convertible bonds amounting to 500 million AED for minority shareholders, with a conversion price set at 1.10 AED per share.
He noted that the conversion of these bonds has resulted in an increased supply of shares, and as some bondholders are individual investors, the market has seen short-term profit-taking activities.
Aboud confirmed that the declines do not indicate any deterioration in the company’s operational or financial fundamentals, and there are no undisclosed material facts affecting the stock price.