Shipping shares in focus; GE Shipping surges 14% to hit over 3-year high

In the past two weeks, GE Shipping has rallied 36 per cent after HDFC Mutual Fund bought an additional over 2 per cent stake in the company via open market

Shares of shipping companies were in focus at the bourses, on Wednesday, with the stock of Great Eastern (GE) Shipping hitting an over three-year high of Rs 391.80 after rallying 14 per cent on the BSE in intra-day trade. The stock surpassed its previous high of Rs 349.75, touched on Tuesday. It is trading at its highest level since February 2018.

Among the other individual stocks, Shreyas Shipping & Logistics was locked in 20 per cent upper circuit at Rs 98, also its 52-week high, on the BSE. Essar Shipping soared 17 per cent to Rs 9.26 on the BSE, followed by Shipping Corporation of India (7 per cent to Rs 114.70) and Seacoast Shipping Services (up 3 per cent at Rs 161). In comparison, the S&P BSE Sensex was up 0.48 per cent at 48,486 points, at 12:26 pm.

According to a Reuters report, the Baltic exchange’s main sea freight index rose on Tuesday, led by the highest capesize vessel rates in nearly 11 years. The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, added 104 points, or 3.4 per cent, to a near 11-year peak of 3,157.

In the past one week, GE Shipping's market price has soared 29 per cent after the company said its board will meet on Friday, May 5, 2021 to consider issue of non-convertible debentures upto an amount not exceeding Rs 1,000 crore by way of private placement during the period of one year. The board will also to consider and approve audited financial results for the year ended March 31, 2021 and recommendation of final dividend, if any, the company said.

In the past two weeks, the stock has rallied 36 per cent after HDFC Mutual Fund bought an additional over 2 per cent stake in GE Shipping via open market. On April 22, HDFC Mutual Fund informed that there has been an increase in the shareholding of the Company by the Schemes of HDFC Mutual Fund by 2.10 per cent. Post acquisition, HDFC Mutual Fund holding in GE Shipping increased to 7.23 per cent from 5.13 per cent earlier.