At the opening bell, stocks of Allcargo Logistics surged nearly 2 percent following the company’s announcement of a 0.35 percent dip in LCL (Less-than-container Load) volumes for November 2023. As mid-day approached, the stock experienced a notable gain of 3.45 percent, reaching Rs 281.75.
Analysts attribute the upward movement to expectations of rising freight rates resulting from a logistical bottleneck triggered by the ongoing Suez Canal crisis. Furthermore, the revelation of January 2nd as the record date for the 3:1 bonus likely contributed to the heightened stock value.
In a recent company update, Allcargo Logistics reported a marginal 0.35 percent decline in volume for November 2023 compared to the same period in 2022, remaining steady compared to October 2023. The update highlighted subdued demand amid a challenging macroeconomic environment for global trade. The report also outlined a significant downturn in key geographies such as the Americas, LATAM, and Europe, with some improvement observed in APAC, spearheaded by China and India.
Adding to its strategic moves, Allcargo Logistics announced the acquisition of a 51 percent stake in ECU Worldwide’s Middle East operating entity for 6.5 million AED. This move is anticipated to fortify the company’s foothold in the region.
