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Press Trust of India
Coimbatore, Nov 11 The Coimbatore stock exchange (CSX) has voiced its concern over the disinterest shown towards buying the shares of textile mills, following the bad performance of the sector.
In a statement, CSX President, K Annamalai, said that most of the broker members used to get bulk buy orders for the Coimbatore-based shares but now there were no takers for even good performing mills. He stated that the share price index of cotton textile industry, the major contributor to the growth of the economy and export revenue, had fallen by 50 per cent compared to the previous year. ``This is also one of the factors for the dullness in the share market,'' he added. The outlook was now totally different towards the equity of the Coimbatore-based companies, which was considered a good bet with low prices, high intrinsic value and high growth shares, Annamalai said.
Most of the textile mills were about to be closed and even well managed and modernised ones were running with cash loss. If the situationcontinued for some more time, the total economy of this region would collapse, he said.
Annamalai appealed to the newly formed 12-member sathyan committee to consider seriously the views of various associations like Chamber of Commerce, Southern India Mills Ass, Small Spinners Association, Exporters Association and other textile groups to revive the industry.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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