Anglo American plc (ADR)(OTCMKTS:NGLOY) was a notable decliner during Friday’s trading session declining by 5% on relatively high volumes, which were 3 times the daily average turnover. Bears seem to holding the upper hand at the current moment as the stock has been forming lower tops and lower bottoms indicative of the strong bearish momentum. Richemont currently trades below all important moving averages, which is considered to be a bearish signal. The momentum oscillators show no signs of a reversal. The stock hit a fresh 52-week low during the trading session, which is a negative.The RSI oscillator has given a sell sign.
Anglo American plc (ADR)(OTCMKTS:NGLOY) looks forward to starting its sponsored American Depository Receipt or ARD program.
As per the reports, it doesn’t want to risk anything; hence, Anglo American has decided to appoint the acclaimed investment management service provider, BNY Mellon, as its depository bank. With this decision, Anglo American has terminated the services of the previously appointed unsponsored facility. Post this arrangement, company’s ADRs will continue to trade on the OTC (over the counter) market in America under Anglo American’s new symbol NGLOY.
Insights of The Matter
Anglo American, having its headquarter in the United Kingdom, is quite active mining, exploration, smelting, and processing of platinum, iron ore, diamonds, copper, coal, zinc, and nickel. It’s primary focus is on minerals and precious metals with a huge portfolio of businesses related to bulk commodities, base metals, etc. Anglo American’s different ongoing and upcoming projects and related operations are based in South America, Southern Africa, North America, Australia and Asia.
When asked by reporters, company’s Finance Director, Rene Medori, said that the conversion of Anglo American ADRs into a sponsored facility will help the company attract more investors than before. It has performed well in the past and has the potential to serve shareholders in the best possible manner. Association with a renowned name like BNY Mellon will empower Anglo American to serve all the investors in the best possible manner.
The senior management of BNY Mellon is equally delighted to get this opportunity. In the words of Christopher M. Kearns, CEO, BNY Mellon, it’s great to have associated with Anglo American plc (ADR)(OTCMKTS:NGLOY) to help it initiate a sponsored depositary receipt program.
Sponsored ADRs are equally beneficial for non-American residents as they are for American residents, and this decision will prove to be advantageous for Anglo American’s portfolio in the coming months. Both the companies will keep all the investors informed about the future steps.