Heard on the Street
Mercator Lines shares rose 19% on Wednesday on talk that the company is likely to take delivery of its new ships/rig by March 2009.
By ET Bureau |
Shipping cos soar on growth buzz
Mercator Lines shares rose 19% on Wednesday on talk that the company is likely to take delivery of its new ships/rig by March 2009. While trade circles attribute the surge in stock prices to reports of the company���s long-awaited deliveries finally coming through, analysts maintain it was on account of a 1% rise in the Baltic freight index.
Almost all shipping stocks, including that of Essar and GE Shipping, saw a rise in share prices due to this development.
The Baltic dry cargo index ��� a measure of bulk-shipping rates ��� which was languishing at a 9-year low, rose 679 points on expectations that a US economic stimulus plan may revive demand for shipments of iron ore. Shipping rates have tumbled 94% from a May 5 record as Chinese steelmakers cut down production. Mercator Lines shares closed at
Rs 27.40 on the BSE.
Contributed by Deeptha Rajkumar
Mercator Lines shares rose 19% on Wednesday on talk that the company is likely to take delivery of its new ships/rig by March 2009. While trade circles attribute the surge in stock prices to reports of the company���s long-awaited deliveries finally coming through, analysts maintain it was on account of a 1% rise in the Baltic freight index.
Almost all shipping stocks, including that of Essar and GE Shipping, saw a rise in share prices due to this development.
The Baltic dry cargo index ��� a measure of bulk-shipping rates ��� which was languishing at a 9-year low, rose 679 points on expectations that a US economic stimulus plan may revive demand for shipments of iron ore. Shipping rates have tumbled 94% from a May 5 record as Chinese steelmakers cut down production. Mercator Lines shares closed at
Rs 27.40 on the BSE.
Contributed by Deeptha Rajkumar
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