News: Indian shares at new closing high, Karachi surges

(RTR 24/03/2006) Mumbai - Indian shares rose 1 percent to a record closing high on Friday, with foreign portfolio investors driving diversified ITC Ltd. and metals maker Hindalco Industries to all-time peaks.

ITC, in which British American Tobacco Plc owns 31.7 percent, ended 4.1 percent higher at 185.40 rupees, off the day's peak of 186.50.

"ITC is one company which has the size to deliver and benefit from the enormous potential from the agro-commodities businesses. Funds are fast realising that," Deven Choksey, managing director at KR Choksey Shares & Securities, said.

"If somebody believes in India's long-term growth potential, they will remain invested in such a stock for years to come."

ITC's surge helped the benchmark 30-share BSE index end at 10,950.30 points, a new closing high. Losers edged out winners 1,261 to 1,241 in volume of 278 million shares.

The index gained 0.8 percent on the week.

The 50-issue NSE index gained 1.01 percent to 3,279.80.

Hindalco, India's top copper and aluminium maker, hit a new peak of 171.10 rupees before ending at 169.80 rupees, up 5.7 percent after a source told Reuters in Sydney Birla Copper, a Hindalco subsidiary which ownes mines in Australia, planned to raise A$293 million ($207 million) through an initial public offering.

A top company official also told Reuters in Mumbai that Hindalco expected to post a rise in January-March profit, boosted by higher aluminium prices and a better performance from its copper division.

In Sri Lanka, the Colombo All-Share ended 0.15 percent higher at 2,232.98 points and in Pakistan, the Karachi 100 index climbed 1.61 percent to 11,459.58.

STOCKS THAT MOVED

* Banking software firm i-flex solutions ltd. climbed 6.5 percent to 1,380.85 rupees, after 3.5 percent of the company's equity was sold in a bulk deal at 1,390 rupees.

* Jet Airways Ltd. gained 0.8 percent to 948.20 rupees after it agreed on Thursday to extend its agreement to buy Air Sahara by 90 days.

* Tube Investments of India Ltd. jumped more than 5 percent to 623.80 rupees after its board approved on Thursday to split each of its shares into five and set a special interim dividend of 17.50 rupees per share.

* State-run oil refiner Hindustan Petroleum Corp. Ltd. added 1.32 percent to 331.05 rupees after it said it would build its refinery in Bhatinda despite oil giant BP Plc's decision to pull out from the project.

* Steel Authority of India Ltd. climbed 10.7 percent to 80.85 rupees, Tata Steel Ltd. added 1.7 percent to 493.30 rupees, Essar Steel Ltd. gained 5.7 percent to 41.85 rupees and JSW Steel Ltd. firmed 3.6 percent to 264.80 rupees on expectations of a 7-10 percent rise in steel prices from April 1.

* Nahar Exports Ltd. climbed 14.1 percent to 78.70 rupees on news that its board would meet on March 30 to consider a 2-for-1 stock split and to transfer its textile business to Nahar Spinning Mills Ltd., which jumped nearly 20 percent to 238.10 rupees.

TOP 3 BY VOLUME

* Steel Authority of India saw trade of nearly 27 million shares.

* Reliance Natural Resources Ltd. slipped 4.6 percent on trade of 26.8 million shares.

* Prism Cement Ltd. jumped 16.6 percent with 7.4 million shares changing hands.