The shares of Great Eastern (GE) Shipping rose as much as 11% intraday on Wednesday — highest intraday gain in 18 months — after the company said it had an investor meet with Reliance Treasury. As a rub-off effect, other shipping stocks also rallied, but analysts remained cautious on the outlook of GE Shipping and the industry over sluggish economic growth in many developed economies, which weighs on global trade.
The GE Shipping stock hit 52-week high of Rs 470.35 on Wednesday but pared some of the gains to close at Rs 452.85, up 6.83%. The stock has gained 25% so far this year compared to benchmark index Sensex’s return of 11% since January 1.
“Informing the stock exchanges about the investor meet is mandatory as per the new Sebi listing regulations and investors should not read too much into it,” said market analyst SP Tulsian. “GE Shipping and other shipping stocks rallied because they are under owned.”