This article was first published 20 years ago

Only 1% stocks remain illiquid

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September 29, 2005 10:32 IST

The current bull market has created opportunities for all investors with over 95 per cent stocks trading at least once in two days in the current calendar year.

Almost 2,700 stocks trade on a daily basis on the Bombay Stock Exchange, of which over 2,550 trades at least once in two days. Only 1 per cent or 28 stocks have not been trading frequently.

A Business Standard Research Bureau  study to gauge the frequency of the trading pattern on the Bombay Stock Exchange shows that stocks traded under A and B1 and B trade almost daily while Z group stocks have infrequent trading.

As many as 64 stocks traded between five and ten trading days in a month, 101 stocks were traded for 11-15 days in a month and 247 traded for 15-20 days in a month. The BSE and the NSE have an average of 22 trading days in a month and 82 per cent stocks have daily trading.

The study further revealed that nine stocks have not traded since April 2005, five stocks have not traded since May 2005 and 10 since June 2005. A total of 29 stocks were last traded in July while 14 other have not traded after August 2005.

Non-banking finance and leasing companies such as Munoth Finance, Anjani Finance, DGP Securities, Nalin Leasing, Modern Shares, Yashraj Securities and Ceejay Finance top the infrequent trade list.

Sainik Finance, Express Leasing, Mahendra Petro, Relson India, Woolite Merchant, Luminaire Technology and Munoth Finance traded less than 30 days on the BSE.

Mahendra Petro, which was traded only for 12 days in 2005, had traded for four days till September 12.

The stock was last traded on July 1 at Rs 4.34 on BSE. In eight trading days from September 12 the stock appreciated by 151 per cent to Rs 10.88 on Wednesday on BSE.

Express Leasing almost doubled from Rs 17.28 on July, 19 to Rs 33.10 on September, 26. During the period stock traded only in seven days, four days in July and three days in current month.

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