Silverline Tech Adrs, Local Shares Volume See Unusual Pattern

The American depository receipts (ADRs) and domestic shares of Silverline Technologies have been witnessing unusual spikes in the volumes for past few days. According to a study conducted by Instanex Capital Consultants, the agency monitoring Indian ADRs/GDRs (global depository receipts), the volume has been rising a whopping 500 per cent on select active trading days, suggesting huge trading by either speculators or operators.

The average daily turnover as percentage of total outstanding shares is at 0.75 per cent in case of ADRs and 8.56 per cent in case of domestic shares. However, the turnover jumps 500 per cent on most active days with outstanding ADRs reaching a whopping 3.87 per cent and 47.05 per cent in domestic shares.

The Silverline ADR closed at $2.68 on the New York Stock Exchange on Friday with a volume of 46,700. The 52-week range for the ADR is $0.91-$11.57 and the average volume at 79,000 of the total outstanding of 85.9 million. The market capitalisation averages at $227.64 million.

Since November '01, the Silverline ADR has been witnessing sudden spikes in its volumes. On November 14, the volume was 12,600 while the very next day it jumped to 2.47 lakh. The highest volume was registered on November 27 at 4.61 lakh.

Similarly during December '01, volumes rose as high as 2.28 lakh on December 4, slipped to 13,200 on December 14. During the current month the trend has continued with volume peaking at 1.41 lakh on January 3 and bottoming at 13,200 on January 10.

Similarly volumes on the Bombay Stock Exchange (BSE) has also witnessed sharp and wide fluctuations during this period. Its volume was a meagre 3.06 lakh shares on November 5, 2001, shot up to the month's high of 36.11 lakh on November 28. During December again, the volume was at a low of 13.12 lakh shares on December 3, surged to the month's high of 36.12 lakh shares on the December 13.

While during the current month, the stock volume clocked a huge 60.12 lakh shares on the January 4, has plummeted to 12.69 lakh shares today with the stock price closing at Rs 68.15, up 6.82 per cent over Friday close.