Equity Alert: ICICI Bank down 5% despite comfort statement
MUMBAI--11:45AM--Shares of ICICI Bank extended losses and were
down 5% at
563 rupees on concerns over the fate of the $80 mln senior bonds of
Lehman
Brothers held by the bank's UK subsidiary, dealers said.
Lehman Brothers Holdings, late Sunday, filed for Chapter 11 in a
US court,
seeking protection against bankruptcy.
ICICI Bank confirmed Tuesday that its UK subsidiary holds $80 mln
senior
bonds of Lehman Brothers.
Sentiment faltered despite ICICI Bank's statement that the
investment in
senior bonds constituted less than 1% of its UK arm's total assets and
less
than 0.1% of the consolidated total assets of ICICI group.
"Even if there are marked to market losses in the UK subsidiary,
valuations
will not be affected significantly," said Vaibhav Agrawal, analyst,
Angel
Broking.
Analysts, however, expect further correction in the bank's share
price and
do not recommend fresh buying as of now.
"Expect 2% correction (in ICICI Bank's share price) from current
levels for
today. One can go for other private sector banks like HDFC Bank," said
a dealer
at a domestic brokerage.
Intraday support for the counter is seen at 551 rupees, and then
at 535
rupees, said Gurudatta Dhanokar, technical analyst, Almondz Global
Securities.
So far today, over 4.48 mln ICICI Bank shares have been traded on
NSE.
ICICI Bank's September futures contract was trading at about 1.2
rupees discount
to the spot price, with 26.10% rise in open interest.
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