Shares of HEG extended gains for the second day, hitting a new 52-week high of Rs 619.50. However, the stock came off its highs and was trading up 2.5% at Rs 596.60. On Wednesday, the shares of the company closed 16.2% higher. The stock is up over 35% in 5 days.
According to news reports, the Chinese government will ban the export of certain important components required for semiconductor manufacturing to the US.
Gallium, antimony, and germanium are among the materials banned from export, said China’s commerce ministry in a statement citing “national security”.
Shipments of graphite, which is also essential for semiconductors, will undergo “stricter reviews of end-users and end-uses”, the ministry said. The restrictions strengthen the enforcement of current limits on critical minerals exports that Beijing initiated last year, but they are applicable solely to the US market.
Following this, shares of Graphite closed 6.7% higher in yesterday’s trade, but the counter gave up all the gains on Thursday, trading 6.3% lower at 569.80.
China is responsible for 83% of germanium production and 94% of global gallium production.
“To safeguard national security interests and fulfil international obligations such as non-proliferation, China has decided to strengthen export controls on relevant dual-use items to the United States,” said China’s commerce ministry.
HEG Vs Nifty 50
The stock of HEG has given a return of 36% in the last one month and 43% in the past six months. It has risen 53% from year to date and 69% in the last one year.
To compare, the benchmark index, Nifty 50 has risen 0.6% in the last five trading sessions. The index has given a return of 0.8% in the last one month and 8% in the last six months. The index gave a return of 12.3% from year to date and 17% in the past one year.