Mercator Lines surges on rumours of stock split

DALAL STREET SPIKES

Shipping company, Mercator Lines touched an all-time high of Rs 897.45 on the BSE on Tuesday in the intra-day. The stock was up more than 6 per cent before closing at Rs 888.90, compared with its previous close of Rs 815.90.

Market analysts said that strong quarterly number and rumours of a stock split is generating huge amount of interest at the counter.

In fact, buoyant shipping rates has driven most shipping scrips upward. In the last one quarter the combined market cap of 11 shipping companies has jumped 46 per cent.

Freight rates are ruling firm on account of a surge in demand for oil from China. Most companies reported robust results in the last three quarters.

GE Shipping's net profit jumped 109 per cent to Rs 167.18 crore, SCI reported a massive 162 per cent growth in net profit to Rs 210.13 crore and Mercator's net profit jumped 276 per cent in second quarter ended September 2004 to Rs 31.63 crore.