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Asiamet Resources Share Price Edged 6.32% Higher After a Significant Share Transfer

Simon Mugo trader
Updated 22 Oct 2021

Asiamet Resources Ltd (LON: ARS) share price edged 6.32% higher after a significant share transfer creating a new majority shareholder.

The company informed investors that Mr Ashish Gupta had transferred his entire shareholding to PT Delta Dunia Makmur Tbk (DOID).

Following the transfer, DOID now has a 15.36% stake in Asiamet. DOID is a publicly listed company that trades on the Indonesian stock exchange.

DOID’s subsidiary PT Bukit Makmur Mandiri Utama (BUMA) is among the largest mining contractors operating in Indonesia.

DOID has signed a confidentiality agreement with Asiamet Resources to access its information through a virtual data room. In addition, the company is actively investing in precious metals and base metals projects throughout Asia.

Investors cheered the move, which saw Asiamet Resources break above the crucial 3p resistance level for the first time since August, with many hoping that the shares will rally higher in the future.

Hower, Asiamet Resources shares quickly fell back below the crucial resistance level but seem to have formed a pre breakout structure over the past few days.

It will be interesting to see if its shares can convincingly break above the crucial 3p level, which could unlock further gains.

Meanwhile, I wouldn’t buy the stock until I saw a convincing break above 3p.

*This is not investment advice. Always do your due diligence before making investment decisions.

Asiamet share price.

IG chart of Asiamet share price 22-10-2021
Source: IG

Asiamet Resources share price edged 6.32% higher to trade at 3.03p, rising from Thursday’s closing price of 2.85p.

Should you invest in Asiamet Resources shares?

Asiamet Resources shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Omega shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading