Ugar Sugar hits upper circuit on bonus move

DALAL STREET SPIKES

Ugar Sugar Works rose 2 per cent to its daily circuit limit after the company said its board of directors would consider a bonus issue.

The company informed the stock exchanges that the board will be meeting on March 28, 2005 to consider the issue of bonus shares. The stock in Monday's trading hit a high of Rs 312.80, to close at those levels. The counter, however, was thinly traded with just 2,573 shares changing hands on BSE.

Market analysts said, sugar stocks are in limelight of late as most sugar companies have reported strong quarterly results for the December ended quarter on the back of a surge in sugar prices.

Further, the prices are expected to remain firm because of the demand-supply mis-match, the analyst added. Since the beginning of January, Ugar Sugar Works stock has witnessed a sharp rally with the stock hitting a 2 per cent upper circuit virtually every day, an analyst said.