Financial Daily from THE HINDU group of publications
Wednesday, Aug 04, 2004
Financial Daily from THE HINDU group of publications Wednesday, Aug 04, 2004 |
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Markets
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Stock Markets Industry & Economy - Paper, Board & Newsprint Paper stocks shine, thanks to price rise Our Bureau
Mumbai , Aug 3 THE shares of paper companies are on the rise due to the hike in international paper prices, brokers and analysts said today. In today's trading shares of Ballarpur Industries, the largest paper company, gained 5.66 per cent at Rs 68.15 on the BSE. Tamil Nadu Newsprint stock gained 3.85 per cent at Rs 53.95 on the BSE. The stock of Rama Newsprint was also firm in today's trading; however, the rise in the stock price was not substantial. Other stocks to rise included Star Paper (up 3.62 per cent at Rs 28.65), Seshayee Paper (up 2.98 per cent at Rs 60.45). However stock price of other paper companies such as JK Corp, Pudumjee Pulp, and Orient Paper declined in today's trading. Brokers said the interest in paper companies is due to the rise in the international newsprint prices. "Prices of newsprint are considered as benchmark for the paper industry. If they rise, the price of other quality of paper also increases," said an analyst with a domestic broking firm.
This week Asian newsprint market participants agreed to a $20-$50 price increase to $495-$630 a tonne, cost and freight, for July-September shipments. An industry expert said there has also been rise in the international pulp price, the raw material for making paper. There is a time lag between the pulp and paper prices. Analysts said the paper prices are likely to remain firm in the next few quarters due to booming economies of various Asian countries and also of Europe. "With industrial activity of most of the developed countries on rise, the demand for paper is expected to be higher," said an analyst with a domestic broking firm. He said the major beneficiary of rise in paper prices would be Ballarpur Industries and Tamilnadu Newsprint as they are the leading paper companies while other companies are not likely to benefit, as they don't have large capacity.
More Stories on : Stock Markets | Paper | rd & Newsprint
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