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Skindia GDR index touches 52-week low
OUR MARKET BUREAU
MUMBAI, Jan 17: Repurcussions of the downslide in major world indices were felt at the GDR markets. Mirroring the continuous price erosion witnessed by the GDR stocks, the Skindia GDR index slumped to touch a new 52-week low of 756.34 points on January 12.During the week ended January 15, the index recorded a net loss of 10.51 per cent to close at 778.56 points against its previous week's close of 870.04 points recorded on January 8. The prices of pivotals continued to fall with the net effect that GDR of SAIL closed at $3.38 registering a loss of 35.62 per cent, the GDR of Indian Aluminium closed at $2 to register a loss of 27.27 per cent and Telco crashed by 25 per cent to close at $6. "Expectations for a bright new year seems to be a distant dream as bad tidings continue to plague the bourses, domestic and GDR," stated a Skindia Finance release. Prices of GDRs of Bajaj Auto, Telco, Hindalco and Mah & Mah crashed to touch their new 52-week lows of $17.00, $6.63, $16.00 and $8.50 respectively. Of the65 GDRs composing the Skindia GDR index, about 34 GD Rs were trading at their 52 week lows during the week. On an average the 65 GDRs and their shares lost 5.72 per cent and 7.56 per cent respectively during the week. Bears continued to hammer GDRs from aluminium, auto and cement sectors which lost 19.62 per cent, 18.61 per cent and 11.29 per cent respectively. As per research conducted by Skindia Finance, about 80 per cent of GDRs are trading at a discount to their issue price. GDRs of ITC, M&M, Hindalco, EI Hotels and Ranbaxy Labs were among the 12 GDRs trading at highest premium to their issue price. The Skindia GDR index premium slumped by 16.47 per cent to close at 16.71 per cent and the barometer of price earning ratio dipped by 8.38 per cent to close at 16.68 points. Despite the negative sentiments at the markets, select buying at the counters of GNFC, Tata Electric and Century Textiles saw their prices surge by 25 per cent, 9.52 per cent and 6.06 per cent respectively. The increased
concentration of sale at the domestic markets, saw the GDRs of Oriental Hotels, Crompton Greaves and NEPC India quoting at a premium to their underlying share price. The GDR of Oriental Hotels was quoted at a premium of 203 per cent over its underlying share which closed at Rs 724.50 on January 15.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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