SKINDIA INDIAN GDR MONITOR
Volume VI No 04	Jan 22-Jan 28, 1999	29-Jan-99

In the week the markets took a down turn on the back of disappointing quarter three results and the correction in the capital markets. As a result of this the Skindia GDR index fell 9.40 points and the BSE Sensex 36.98 points in the week moving in the band of 3.02% and 1.85% respectively. During the week, the 60 GDRs on an average lost marginally 0.38%, and the shares 0.49%. As the fall in the underlying shares was more, the premiums of the 60 GDRs inched upwards to 4.64% on Jan 28 from 4.31% on Jan 21 while the average spreads of the 37 most actively traded GDRs narrowed to 8.08% on Jan 28 from 8.23% on Jan 21, indicating that the undertone remains positive. In the industry wise break up, the GDRs from cable sector were the highest gainers appreciating 5.43% followed by steel with 3.85% and cement with 2.00%.The top losers were telecom, aluminium and pharma shedding 3.40%, 2.18% and 1.91% respectively. In shares too the major gainer was the cable sector appreciating 11.11% followed by cement with 4.10%, while the top losers were auto, hotel and pharma depreciating 4.48%, 4.09% and 3.96% respectively. Study on world wide depository receipt programmes-1998.>br> India has not been able to come out with a depositary programme for over a year. It is only on Jan 17, 1999 that the road shows for VSNL has started, after the MTNL GDR issue which took place on Dec 04, 1997. The over all Depositary receipt market also did not fare as well in 1998 as against 1997, where 152 new depository receipt (DR) programs from 49 countries were established as compared with 204 programs from 50 countries in 1997. Europe being the leading issuer with 113 new programs (74%), followed by Asia with 21 (14%), Latin America with 11 (7%) & Africa with 7 (5%). The first Euro - denominated Depository Receipt was established in Croatia. In total 88 American Depository Receipt (ADR), 32 Global Depository Receipt (GDR), 8 Rule 144A (RADR) and 24 European Depository Receipt (EDR) programs were established. The total capital raised from Depository Receipts amounted to $9.3bn in 1998, a decrease of 50% from the $18.6bn raised during 1997.The largest offering was from Equant NV in the Netherlands which raised $705 million in July. Europe was the leading capital raiser with $9.6bn new capital raised, followed by Asia $2.2bn, Latin America $74mm,and Africa $117mm.

DISCLAIMER : Factual material is obtained from sources believed to be reliable and SkindiaFinance is not responsible for any errors and omissions contained herein. Any recommendation contained in this report may not be suitable for all issuers.