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Our Market Bureau
Mumbai, Dec 19: The US attack on Iraq led to panic selling at the GDR markets last week, bringing the Skindia GDR Index down by 7.96 per cent to close at 524.49 points on December 17.
Between December 10 and December 17, the Skindia GDR price-earnings index dipped by 7.81 per cent to close at 14.73 points. The average premium of the 60 GDRs fell to 7.12 per cent from 7.21 per cent, while the average spreads of 37 most actively traded GDRs widened to 9.47 per cent from the earlier levels of 9.13 per cent witnessed on December 10.
Although the local markets found support towards the lower end to rebound to 2,900 points, the Skindia GDR Index continued its downward move for three consecutive sessions. Mirroring the negative sentiment of players at the GDR markets, the Skindia GDR premium index nosedived by 26.99 per cent to close at 13.47 per cent. However, the 60 GDRs lost an average 3.04 per cent, while their underlying stocks fell by 3.12 per cent. The GDRs of VSNL and MTNL continued to be traded at apremium of 29.89 per cent and 29.05 per cent respectively.
Among the GDRs, pharma and cement sector GDRs bucked the trend and registered a smart recovery despite the lacklustre sentiment at the GDR markets. While pharma sector GDRs gained 2.24 per cent, those from the cement sector gained 1.83 per cent. The top losers were GDRs of telecom, hotel and aluminium sectors, which fell by 9.02 per cent, 8.37 per cent and 7.20 per cent, respectively. The steel sector GDRs remained unchanged. Among the underlying stocks, the cable and cement sector GDRs appreciated by 3.31 per cent and 1.08 per cent, respectively.
A study conducted by Skindia Finance on the performance of the pharma sector indicates the need for a `tonic' to revive this sector. "The pharma sector has not been keeping very well. From October 1, 1998, the GDRs of the pharma sector on an average lost 6.22 per cent with an average daily loss of 0.60 per cent," stated the release from Skindia Finance.
Ranbaxy has been the major loser, with its GDRdeclining by 9.87 per cent to $7.83 (ex-bonus) followed by Core Healthcare which lost 7.69 per cent to $0.30. Dr Reddy's declined 4.35 per cent to $11 and Wockhardt 2.99 per cent to $6.50. However, among the underlying GDRs the decline was restricted to 5.84 per cent with the daily average loss of 0.04 per cent, compared with a loss of 7.67 per cent in the 30-share BSE Sensex. The major loser in the domestic market was Wockhardt which fell by 13.93 per cent to Rs 255.10.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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