ACC Leads Cement Share Fall After Crash In Prices

Mumbai, Sept 17: | Updated: Sep 18 2003, 05:30am hrs
Cement shares fell sharply on the bourses and the fall was led by the Associated Cement Companies (ACC) which fell by 4.91 per cent on BSE as cement prices have crashed in the western and southern regions. The stock opened at Rs 201.30, went on to touch a high of Rs 202.90 before finally settling at Rs 189.90 on BSE. On NSE, ACC lost ground by 2.52 per cent to end the day at Rs 191.15, as against its previous close of Rs 196.10.

The stock touched a low of Rs 188 on BSE while on NSE it dropped to Rs 187.85. ACC clocked total traded volumes of 9,92,881 shares, whilst on NSE a total of 24,52,744 shares changed hands.

Market analysts are of the view that post-monsoon demand should pick up which will provide a fillip to cement offtake.

Said an analyst, Cement stocks took a beating on the bourses today as cement prices have fallen in the last week. However, post monsoon demand is expected to pick up and since rural demand would be good it will lead to a rise in cement prices.

Said a dealer, The rainfall this year is four per cent above average and with the demand for housing is expected to rise, it will benefit the cement producers. Also interest rates on housing loans have fallen which would further boost the sentiment for housing loans.