The Hindu Business Line : GTB - still some buyers!

THE announcement of de-listing of Global Trust Bank (GTB) had a negative impact on the scrip with its stock price locked in the lower circuit. However, even at this level there were buyers for the stock.

In today's trading, the stock was locked in the lower circuit (20 per cent) just after the opening of the market. The stock closed at Rs 1.85 both on the BSE and the NSE.

Traded volume on the BSE was 2.54 lakh shares and on the NSE, 11.54 lakh shares. However, the volume in the counter was much lower than yesterday.

But brokers said there was constant buying in the shares of the beleaguered bank throughout the day.

"One could see someone buying the shares at lower circuit level, despite the announcement that the shares has no value," said a dealer with a domestic broking firm.

Mr Arun Kejriwal of KRIS Research said: "When the Chairman of Oriental Bank of Commerce believes that GTB shares are worth toilet paper, why should anybody buy shares at all. It defies logic and is irrational".

Stock exchanges have informed that there would not be any trading in the shares of GTB from August 27.

After the announcement of merger of the bank with OBC, there has been increase in the trading volumes.

Some brokers said several of their clients have been just gambling with the shares of GTB.

"Some investors purchased shares of GTB like a lottery knowing that there is no value for the shares," said a broker.

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