MUMBAI, July 20: Total market capitalisation of all companies listed on the Bombay Stock Exchange touched a high of Rs 5,41,382 crore as on June 30, 1997, the highest in the past 12 months, according to the Centre for Monitoring Indian Economy (CMIE).

Further, resource mobilisation from the primary market during the first quarter ended June 1997, was 63 per cent higher than in the previous year's first quater. During April-June 1997, a total amount of Rs 6,804 crore was raised from the primary market, higher than Rs 4,177 crore in the same period last year.

Debt offerings continued to dominate equity in the total capital raised during the first quarter and were 60 per cent in the form of non-covertible debentures and bonds most of which were privately placed. As regards equity issues, they were just 49 in this year's first quater as against 309 in the previous year's first quarter.

The market capitalisation on the BSE in June 1997 was 15.35 per cent higher than Rs 4,69,319 crore recorded in May 1997, which was just 1.69 per cent higher than Rs 4,61,538 crore in April 1997.

Compared to the previous year's corresponding first quarter these figures were Rs 5,13,123 crore in June 1996, Rs 5,01,345 crore in May 1996 and Rs 5,18,824 crore in April 1996.

The surge in market capitalisation was a direct outcome of capital appreciation, since the new listings of June 1997 added paltry Rs 289 crore to the overall market capitalisation of BSE.

Interestingly, the month of June 1997 was also characterised by very high returns on the secondary markets and low volatility.

According to CMIE, the rise of 14.2 per cent in the CMIE Overall Share Price Index was the highest monthly return seen over the past two years. Owing to the consistent decline seen in the index during the period July to November 1996, the 12-month period ended June 1997 saw the index decline by 2.2 per cent.

The increase in the CMIE Index during June 1997 was mainly attributed to flaring up of share prices of companies with large market capitalisation.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.