Allcargo announces record date for bonus; stock zooms ~4%

21 Dec 2023 , 03:18 PM

Allcargo Logistics stock rose up to 4.5% after the transportation business disclosed a 0.35% decrease in LCL (Less-than-container Load) volumes for November 2023.

Analysts believe that the increases are attributable to the expectation of an increase in freight prices as a result of a logistic bottleneck created by the continuing Suez Canal situation. Furthermore, the announcement of January 2nd as the record date for the 3:1 bonus may have helped the stock price to gain momentum.

According to a corporate update, Allcargo Logistics’ volume for November 2023 was 0.35% lower than in November 2022 and stayed constant compared to October 2023. According to the assessment, demand remains weak, indicating a difficult macroeconomic climate for global commerce.

The report also noted a significant decline across key geographies of the Americas, LATAM, and Europe, with some improvement in APAC led by China and India. Allstar Logistics has also acquired 51 percent shares in ECU Worldwide’s Middle East operating entity for 6.5 million AED, which they believe will strengthen the company’s position in the country.

At around 2.49 PM, Allcargo Logistics was trading 4.61% higher at Rs 284.90, against the previous close of Rs 272.35 on NSE. The counter touched an intraday high of Rs 286.95.

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