The Calcutta Stock Exchange authorities are pleasantly surprised that collections from members of C-STAR have touched Rs 48 lakh in the very first month of its operation. Trading went fully online on CSE from April 4 this year and even the most optimistic among its members had not expected collections to cross Rs 30 lakh, based on the average level of turnover in the first week of April. CSE charges its members a flat fee of 0.0025 per cent of the trade value. This translates to a fee of Rs 1 lakh if the daily turnover is Rs 400 crore. Exchange officials have done a quick calculation which shows that the recurring annual expenditure on maintenance of the system is Rs 3 crore. With a monthly inflow of about Rs 50 lakh, the exchange would have a comfortable surplus of Rs 3 crore after accounting for recurring expenses.

Wheel of fortune

Discreet enquiries for sugar stocks are back. Sugar industry is fast moving from a glut situation in the last two seasons to one of tight supplies. Sugar industry sources confirm that the expected closing stock on September 30, 1997 would be about 70 lakh tonnes compared to 79 lakh tonnes on September 30, 1996. Sugar production is showing a declining trend. It dropped from 164 lakh tonnes in 1995-96 to 130 lakh tonnes in 1996-97. It is expected to fall further to around 110 lakh tonnes in the 1997-98 sugar season (October 1997-September 1998). On the basis of a consumption level of 140 lakh tonnes in 1997-98, industry observers expect the closing stock of sugar at the end of 1997-98 season to be around 40 lakh tonnes. One company which is ideally placed to capitalise on spurt in free sale sugar prices is Balrampur Chini which has a larger component of free sale sugar as one of its units, Babhnan is entitled to 100 per cent free sale quota up to 2001 AD. The price increase is available on a larger capacity and the increase in industrial alcohol prices in the current year would further boost its bottomline. The scrip has caught the fancy of investors and recorded an appreciation of about 40 per cent in less than a month's time.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.