Equity Alert: Cement shrs seen up 3-4% as export ban eased further

[K.Karthik Raja]

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Equity Alert: Cement shrs seen up 3-4% as export ban eased further
MUMBAI--9:35AM--Shares of cement companies are seen up 3-4% as the
government Tuesday further eased ban on cement exports by allowing
shipments
through ports in Gujarat.
Major cement exporters from Gujarat such as Ambuja Cements,
UltraTech
Cement, Sanghi Industries, and Gujarat Sidhee Cement are seen inching
higher
on likely better revenues, dealers said.
However, other cement shares are also likely to trade higher as
the move is
seen as a step towards relief to the sector, which is under government
pressure
for a long time to cut cement prices.
Earlier this month, government had allowed exports to Nepal after
cement
companies had agreed to cut prices by 3-7 rupees per 50 kg bag in some
states.
In April, the government had banned cement and clinker export to
augment
domestic supplies as part of efforts to rein in inflation.
In the year ended Mar 31, domestic cement companies are estimated
to have
exported around 3.6 mln tn, compared with over 6 mln tn in 2006-07.
Around 91% of this export originated from Gujarat, and the major
exporters
were UltraTech Cement, Ambuja Cements, Gujarat Sidhee Cements, and
Sanghi
Industries.