The Hindu Business Line : Smooth sailing for shipping counters

Stocks of ship-building companies have been witnessing sharp rise in price with increased trading volumes. Ship-building companies such as ABG Shipyard, Bharati Shipyard, Hariyana Ship Breakers, Srinivasa Shipping & Property Development and Western India Shipyard have gained in the region of 21-54 per cent in the last one month.

According to brokers, traders are buying these stocks on talk that Government is clearing some portion of dues of ship-building industry.

Shipping stocks such as Shipping Corporation, Great Eastern Shipping, Varun Shipping, Mercator Lines and Essar Shipping have also been witnessing smart buying interest in the recent past. The stock of GE Shipping gained 35 per cent in the last one month, Essar Shipping 40 per cent, Mercator Lines 37 per cent and Shipping Corporation 18 per cent and Varun Shipping jumped 7.2 per cent. These stocks have also seen a sharp surge in trading volumes, particularly, in the last few days. They also recorded weekly gains in the range of 4-23 per cent.

A recovery since the December start in Baltic Dry Index, after slumping almost 95 per cent from its peak, also improved the sentiment for these stocks.

Select counters also witnessed buying interest on the back of promoters’ mop-up.

K.S. Badri Narayanan

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