Equity Alert: Mercator up; arm renews shipping deal at higher rate

[K.Karthik Raja]

Equity Alert: Mercator up; arm renews shipping deal at higher rate
MUMBAI--1PM--Shares of Mercator Lines were up nearly 3% at 108
rupees after
the company's Singapore subsidiary renewed a contract with Tata Power
Co for
shipment of coal at a higher rate, dealers said.
This is the second contract renewal for the company this week, and
both
are at significantly higher rates.
Mercator Lines (Singapore)'s new contract with Tata Power is for
four
years. Earlier this week, the company had also renewed a contract with
Arcelor Mittal Steel.
"The new rates are proof that rates will remain firm for quite
some time
now, and shipping companies will further benefit from it. The long-
term
contract also gives good earnings visibility," an analyst said.
Resistance for the stock is seen at 118 rupees.
Mercator Lines was trading on a volume of 3.7 mln shares on NSE
and
BSE combined.
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