Financial Daily from THE HINDU group of publications
Thursday, Dec 05, 2002
Financial Daily from THE HINDU group of publications Thursday, Dec 05, 2002 |
|
|
|
|
|
Markets
-
Stock Markets Hindalco slips on LME prices — Indo Gulf takes a reverse hit Jayanta Mallick
KOLKATA, Dec. 4
THE Hindalco stock today declined on the major bourses mainly because of profit-bookings and also to some extent on easing of aluminium prices at the LME on Tuesday. After touching a day's high of Rs 557, the stock closed at Rs 540.30, registering a loss of Rs 5 over its previous close.
According to Mr Abhay Jaiswal of Lohia Securities, aluminium prices eased by 1.7 per cent on Tuesday - from Monday's closing of $1380.30 per tonne to $1369.50. "This had a negative impact on the Hindalco counter. As the overall market towards the end of the session on Wednesday went on a profit-taking mode, Hindalco lost further ground on selling," he felt. Mr Sanjeev Kapoor of Anagram Stockbroking said the counter has risen by about 15 per cent from its 52-week low of Rs 469.35 in 31 sessions till December 2 because of firmness in aluminium prices on the LME. "At current market price, the stock is trading at 6.2 times its trailing four quarter earnings of Rs 86.4. The book value of the company per share stood at Rs 605 as on March 2002 (excluding revaluation reserves). The merger of Indo Gulf's copper business will result in diversifying the risk," he added. According to Mr Arun Kejriwal, an analyst, the market sentiment for Hindalco is linked to LME aluminium prices. Since Indo Gulf Corporation's copper business is being merged with Hindalco, the market has also linked the Indo Gulf scrip movement to that of Hindalco. Incidentally, the Indo Gulf stock today closed with a loss of a little over one per cent at the Bombay Stock Exchange and the National Stock Exchange. On the BSE, the stock finished at Rs 47.6, after touching a high of Rs 49.90. "The price movement in Indo Gulf currently follows the proposed 12:1 swap ratio for Hindalco. Because of a kind of arbitrage balancing in relation to the Hindalco stock price, Indo Gulf is currently attracting good volumes also," Mr Kejriwal said. It may be mentioned that the fertiliser business of Indo Gulf Corp to be hived off as a new company christened Indo Gulf Fertiliser Ltd under a restructuring plan.
Send this article to Friends by
E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|